Microsoft is reportedly looking to acquire data centre solutions giant Mellanox Technologies to enhance its cloud services capabilities.
Microsoft has hired Goldman Sachs to negotiate the Mellanox acquisition, according to Israel-based financial publication TheMarker, citing unnamed market sources. Microsoft is a large client of Mellanox and plans to leverage the Israel-based vendor to strengthen its services in cloud computing to better compete against Amazon and Google, said TheMarker.
The report comes just one month after CNBC reported that Mellanox—a provider of server, storage, chip and networking solutions and services—was being pursued by Xilinx for acquisition. The Xilinx deal was estimated to top US$100 per share, which valued Mellanox at US$5.5 billion.
Mellanox, which received a 5-star rating in CRN USA's 2018 Partner Program Guide, has a market cap of roughly US$5 billion. The company offers a slew of data centre products from Ethernet switches, chips and InfiniBand intelligent interconnect solutions to servers, storage and hyper-converged infrastructure.
In a statement to CRN USA, Mellanox said it does not comment on rumours and speculations. Microsoft did not respond to comment by press time.
In June, Mellanox appointed three new board members in a settlement with activist investment firm Starboard Value after the hedge fund, which owns a 10.5 percent stake in Mellanox, said it planned to oust all sitting directors.
In October, Mellanox reported quarterly earnings revenue of US$279 million, up 24 percent year over year. The company shares were trading at US$93.12 as of Wednesday afternoon.