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NVIDIA and Mellanox announced that the companies have reached a definitive agreement under which NVIDIA will acquire Mellanox. Pursuant to the agreement NVIDIA will acquire all of the issued and outstanding common shares of Mellanox for 125 per share in cash representing a total enterprise value of approximately 6.9 billion. Once complete the combination is expected to be immediately accretive to NVIDIAs non-GAAP gross margin non-GAAP earnings per share and free cash flow.The acquisition will unite two of the worlds leading companies in high performance computing HPC. Together NVIDIAs computing platform and Mellanoxs interconnects power over 250 of the worlds TOP500 supercomputers and have as customers every major cloud service provider and computer maker.The data and compute intensity of modern workloads in AI scientific computing and data analytics is growing exponentially and has put enormous performance demands on hyperscale and enterprise datacenters. While computing demand is surging CPU performance advances are slowing as Moores law has ended. This has led to the adoption of accelerated computing with NVIDIA GPUs and Mellanoxs intelligent networking solutions.Datacenters in the future will be architected as giant compute engines with tens of thousands of compute nodes designed holistically with their interconnects for optimal performance. An early innovator in high-performance interconnect technology Mellanox pioneered the InfiniBand interconnect technology which along with its high-speed Ethernet products is now used in over half of the worlds fastest supercomputers and in many leading hyperscale datacenters.With Mellanox NVIDIA will optimize datacenter-scale workloads across the entire computing networking and storage stack to achieve higher performance greater utilization and lower operating cost for customers.The emergence of AI and data science as well as billions of simultaneous computer users is fueling skyrocketing demand on the worlds datacenters said Jensen Huang founder and CEO of NVIDIA. Addressing this demand will require holistic architectures that connect vast numbers of fast computing nodes over intelligent networking fabrics to form a giant datacenter-scale compute engine.Were excited to unite NVIDIAs accelerated computing platform with Mellanoxs world-renowned accelerated networking platform under one roof to create next-generation datacenter-scale computing solutions. I am particularly thrilled to work closely with the visionary leaders of Mellanox and their amazing people to invent the computers of tomorrow.We share the same vision for accelerated computing as NVIDIA said Eyal Waldman founder and CEO of Mellanox. Combining our two companies comes as a natural extension of our longstanding partnership and is a great fit given our common performance-driven cultures. This combination will foster the creation of powerful technology and fantastic opportunities for our people.The companies have a long history of collaboration and joint innovation reflected in their recent contributions in building the worlds two fastest supercomputers Sierra and Summit operated by the U.S. Department of Energy. Many of the worlds top cloud service providers also use both NVIDIA GPUs and Mellanox interconnects. NVIDIA and Mellanox share a common performance-centric culture that will enable seamless integration.Once the combination is complete NVIDIA intends to continue investing in local excellence and talent in Israel one of the worlds most important technology centers. Customer sales and support will not change as a result of this transaction.