NVIDIA (NVDA) Deal for Mellanox (MLNX) a Long-Term Positive - RBC

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Nvidia (NVDA) option implied volatility flat into acquiring Mellanox (MLNX) for $6.9B, or $125 per share in cash

March 11, 2019 7:26 AM EDT

NVIDIA (NASDAQ: NVDA) March call option implied volatility is at 41, April is at 40; compared to its 52-week range of 25 to 86 into acquiring Mellanox (MLNX) for $6.9B, or $125 per share in cash.

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NVIDIA (NVDA) to Acquire Mellanox (MLNX) in Deal Valued at $6.9 Billion

March 11, 2019 7:02 AM EDT

NVIDIA (NASDAQ: NVDA) and Mellanox (NASDAQ: MLNX) today announced that the companies have reached a definitive agreement under which NVIDIA will acquire Mellanox. Pursuant to the agreement, NVIDIA will acquire all of the issued and outstanding common shares of Mellanox for $125 per share in cash, representing a total enterprise value of approximately $6.9 billion. Once complete, the combination is expected to be immediately accretive to NVIDIAs non-GAAP gross margin, non-GAAP earnings per share and free cash flow.

The acquisition will unite two of the worlds leading companies in... More