Mellanox Makes an Acquisition

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Mellanox Technologies (NASDAQ: MLNX  ) now has a new asset in its portfolio. The company announced it has signed a definitive agreement to acquire privately held Kotura, which in Mellanox's words is a "leading innovator and developer of advanced silicon photonics optical interconnect technology for high-speed networking applications." The price is roughly $82 million, and will be paid in cash.

The deal is expected to close in the second half of this calendar year. Mellanox believes it will be accretive to fiscal 2014 non-GAAP earnings by around $0.01-$0.03 per share. This is because the new asset should boost the firm's "ability to deliver cost-effective, high-speed networks with next generation optical connectivity, allowing data center customers to meet the growing demands of high-performance, Web 2.0, cloud, data center, database, financial services and storage applications."

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9/27/2016 1:13 PM
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