Mellanox Technologies, Ltd. (MLNX), an interconnect solutions provider for servers and storage systems, Tuesday said it entered into a definitive agreement to acquire privately held Iptronics, a provider of optical interconnect component design for digital communications, for about $47.5 million in cash. The transaction, expected to add to Mellanox's earnings for full fiscal year 2014 by $0.01 to $0.03 per share, is scheduled to close in the second half of 2013.
The acquisition is expected to help bridge the gap between optical and electrical interfaces and allows system providers to overcome the physical constraints of using copper-based connections in high-speed interfaces and backplanes, Mellanox said. Mellanox currently intends to retain IPtronics' existing product lines to ensure continuity for customers and partners
Mellanox expects to establish its first R&D center in Europe at IPtronics' current location in Roskilde, Denmark, and further expand its customer support presence within Europe.
Commenting on the acquisition, Eyal Waldman, president and CEO of Mellanox Technologies said,"...The proposed acquisition of IPtronics is highly complementary with our recently proposed acquisition of Kotura. IPtronics' parallel optical interconnect ICs further solidify our strategy to have a full end-to-end solution for the server and storage interconnect..."
For comments and feedback: editorial@rttnews.com