[May 16, 2013] Mellanox Technologies to acquire Kotura for USD82m cash Tweet May 16, 2013 (M2 EQUITYBITES via COMTEX) -- Mellanox Technologies Ltd (Nasdaq:MLNX) (TASE:MLNX.TA), a supplier of end-to-end interconnect solutions for servers and storage systems, announced on Wednesday, the signing of a definitive agreement to acquire Kotura Inc, a provider of advanced silicon photonics optical interconnect technology for high-speed networking applications. Under the agreement, Mellanox will acquire Kotura at a total cash purchase price of approximately USD82m, subject to certain adjustments. Reportedly, the terms of the transaction have been unanimously approved by both the Mellanox and Kotura boards of directors. Mellanox said that it currently expects this transaction to be accretive to its full fiscal year 2014 earnings by approximately USD0.01 to USD0.03 per share on a non-GAAP basis. This acquisition is expected to expand Mellanox's ability to deliver cost-effective, high-speed networks with next generation optical connectivity, allowing data centre customers to meet the growing demands of high-performance, Web 2.0, cloud, data centre, database, financial services and storage applications. Also, Mellanox expects to establish its first R&D centre in the US at Kotura's current location. Further, Mellanox intends to retain Kotura's existing product lines to ensure continuity for customers and partners. The proposed acquisition, which is subject to customary closing conditions, including the receipt of applicable regulatory approvals and the approval of Kotura's shareholders, is currently projected to close in the second half of 2013. In connection with the transaction, J.P. Morgan acted as exclusive financial adviser to Mellanox, while Mooreland Partners acted as exclusive financial adviser to Kotura. Comments on this story may be sent to [email protected] [ Back To TMCnet.com's Homepage ]