Mellanox Technologies, Ltd. (MLNX) announced its intent to acquire privately held Kotura, Inc. at a total cash purchase price of about $82 million subject to certain adjustments. The terms of the transaction have been unanimously approved by both the Mellanox and Kotura boards of directors.
The company stated that the transaction is currently projected to close in the second half of 2013, subject to the completion of certain closing conditions.
Mellanox said it currently expects the transaction to be accretive to its full fiscal year 2014 earnings by approximately $0.01 to $0.03 per share on a non-GAAP basis.
Mellanox noted that the acquisition is expected to expand its 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.
The company said it expects the proposed acquisition of Kotura to enhance its competitiveness and its position as a leading provider of high-performance, end-to-end interconnect solutions for servers and storage systems.
Further, Mellanox intends to retain Kotura's existing product lines to ensure continuity for customers and partners.
For comments and feedback: editorial@rttnews.com