Mellanox Technologies plans to acquire networking chip company EZchip Semiconductor in a deal worth U.S. $811 million.
Mellanox makes InfiniBand and Ethernet interconnection platforms and products for the data centre while EZchip sells network and multi-core processors that are used in carrier edge routers and enterprise platforms.
EZchip’s customers include Huawei, ZTE, Ericsson, Oracle, Avaya and Cisco Systems.
“Mellanox needs to diversify its business; it is still heavily dependent on the high-performance computing market and InfiniBand,” says Bob Wheeler, principal analyst, networking at market research firm The Linley Group. “EZchip helps move Mellanox into markets and customers that it would not have access to with its existing products.”