Mellanox Technologies, Ltd. MLNX confirmed in a press release on Tuesday that its proposed merger with EZchip Semiconductor Ltd EZCH has received the necessary votes from EZchip's shareholders to proceed.
Related Link: EZchip's Board Recommends Investors Vote For Merger With Mellanox Technologies
Mellanox stated that it expects to complete the acquisition of EZchip during the second half of February, 2016. The company also noted that it plans on integrating employees from both companies and retaining both companies' product lines.
"With the receipt of the necessary shareholder approval, we are pleased to be another step closer to completing the acquisition of EZchip," said Eyal Waldman, President and CEO of Mellanox. "This acquisition will enhance our scale and profitability by broadening the Mellanox product portfolio, add critical embedded processing intellectual property and know-how to our capabilities and significantly expand our market reach and customer relationships. With the combination of our teams, technologies and products, Mellanox and EZchip together will be in an excellent position to capitalize on the substantial opportunity for Intelligent Networking, and deliver significant benefits to shareholders, data center customers and employees of the combined company."
Following the announcement, shares of EZchip were trading higher by 1.00 percent at $25.29 while shares of Mellanox were lower by 0.18 percent at $38.69.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
