U.S. chipmaker Nvidia Corp said on Monday it will buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion, beating rival Intel Corp in a deal that would help the company boost its data center business. The all-cash offer of $125 per share represents a premium of 14 percent to Mellanox’s Friday close. Shares of Mellanox rose 8.7 percent and Nvidia shares rose about 1 percent in premarket trading.
Nvidia has developed a way to create an interactive virtual reality environment using real-world videos rather than creating that world with nothing but computer coding.
Chief Executive Jenson Huang said prices for Nvidia’s gaming cards had risen with the cryptocurrency frenzy and the high prices drove some buyers away. As the frenzy receded and card prices came down, Nivida expected sales volumes to grow again as buyers who were priced out came back.