[May 20, 2013] Mellanox Technologies to Acquire Kotura Tweet May 20, 2013 (Close-Up Media via COMTEX) -- Mellanox Technologies, a supplier of interconnect solutions for servers and storage systems, announced its intent to acquire privately held Kotura, Inc., a developer of silicon photonics optical interconnect technology for high-speed networking applications. In a release dated May 15, the Company said that Mellanox and Kotura have signed a definitive agreement under which Mellanox will acquire Kotura at a total cash purchase price of approximately $82 million subject to certain adjustments. The terms of the transaction have been unanimously approved by both the Mellanox and Kotura boards of directors. The transaction is currently projected to close in the second half of 2013, subject to the completion of certain closing conditions. Mellanox currently expects the transaction to be accretive to its full fiscal year 2014 earnings by approximately $0.01 to $0.03 per share on a non-GAAP basis. "Operating networks at 100 Gigabit per second rates and higher requires careful integration between all parts of the network. We believe that silicon photonics is an important component in the development of 100 Gigabit InfiniBand and Ethernet solutions, and that owning and controlling the technology will allow us to develop the best, most reliable solution for our customers," said Eyal Waldman, president, CEO and chairman of Mellanox Technologies. "We expect that the proposed acquisition of Kotura's technology and the additional development team will better position us to produce 100Gb/s and faster interconnect solutions with higher-density optical connectivity at a lower cost. We welcome the great talent from Kotura and look forward to their contribution to Mellanox's continued growth." "This acquisition is important for both companies to enable interconnect innovation for data centers that require solutions that move data faster and more efficiently. Together, we can execute faster and deliver better solutions based on Kotura's silicon photonics platform that delivers the demands of 100Gb/s interconnects and beyond," said Jean-Louis Malinge, president and CEO of Kotura, Inc. "We are delighted to join the Mellanox team and look forward to working together to propel the combined company's further growth." The proposed acquisition is subject to customary closing conditions, including the receipt of applicable regulatory approvals and the approval of Kotura's shareholders. In connection with the transaction, J.P. Morgan acted as financial adviser to Mellanox, and Mooreland Partners acted as financial adviser to Kotura. ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]