NVIDIA gets China’s nod for Mellanox acquisition

Photo by bongkarn thanyakij from PexelsNVIDIA has received approval from all necessary authorities to proceed with its planned acquisition of Mellanox.

The latest approval by China’s State Administration for Market Regulation follows antitrust approval from the European Commission and Mexico and the expiration of the waiting period under US antitrust laws. With the exception of the remaining customary closing conditions, all conditions to the deal’s closing have been satisfied.

NVIDIA announced on March 11, 2019 its intention to acquire Israel-based Mellanox for US$125 per share in cash, or US$6.9 billion in a transaction that would combine NVIDIA’s leading computing expertise with Mellanox’s high-performance interconnect technology.

The acquisition is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP EPS and free cash flow. Closing is expected to occur on or about April 27, 2020.