Mellanox Makes an Acquisition

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Mellanox Technologies now has a new asset in its portfolio. The company announced it has signed a definitive agreement to acquire privately held Kotura, which in Mellanox's words is a "leading innovator and developer of advanced silicon photonics optical interconnect technology for high-speed networking applications." The price is roughly $82 million, and will be paid in cash.

The deal is expected to close in the second half of this calendar year. Mellanox believes it will be accretive to fiscal 2014 non-GAAP earnings by around $0.01-$0.03 per share. This is because the new asset should boost the firm's "ability to deliver cost-effective, high-speed networks with next generation optical connectivity, allowing data center customers to meet the growing demands of high-performance, Web 2.0, cloud, data center, database, financial services and storage applications."

The article Mellanox Makes an Acquisition originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in Mellanox, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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