June 6, 2013

Proposed acquisition for Mellanox to buy IPtronics

Mellanox announced in a press release this week that it intends to purchase IPtronics, which is a leader in optical interconnect component design for digital communications. Mellanox specializes in supplying interconnect solutions to servers and storage systems. The transaction will help Mellanox create smooth connections between optical and electrical interfaces. This can assist system providers as they overcome difficulties with copper-based connections, the release explained.

Eyal Waldman, president and CEO of Mellanox Technologies, said in the press release that the proposed IPtronics acquisition is complementary of the company's previous technology acquisition of Kotura. With Iptronics' solutions though, Waldman explained that Mellanox will be able to have a full end-to-end solution for the server and storage interconnect.

"The new and emerging Web 2.0 and cloud applications that influence our day to day living depend on fast manipulation of data, which is growing exponentially," Waldman said. "Mellanox's interconnect provides the fastest and most scalable solution for moving data between server-to-server and server-to-storage, allowing the continuous development, use and expansion of these applications."

The CEO added that once the acquisition is finalized, Mellanox will be able to offer faster interconnect solutions that are more affordable, at a higher density and with lower power.

Niels Finseth, co-founder and CEO of IPtronics A/S, had similar feelings. Finseth explained in the press release that the move is important for both companies, as data centers search for solutions that are able to move data faster and more efficiently. After the M&A activity is complete, Mellanox and IPtronics will be able to move forward in the evolving industry.