MLNX - Nvidia: Marching Toward HPC Leadership Through Mellanox
Investment Thesis
Nvidia (NVDA) proposed to acquire Mellanox (MLNX) for $125/share or a total enterprise value of $6.9B. The offer represents a 14% premium to MLNX's closing share price before the offer. Based on current consensus estimates, the deal values MLNX at 15.6x NTM EBITDA, slightly above the median for recent similar semiconductor deals with end-market exposures, which was 15.1x.
Mellanox is a semiconductor company that designs and contracts the production of interconnect devices and solutions based on Ethernet and InfiniBand used for communications between servers, storage systems, and communications infrastructure equipment.