This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Voltaire Shares Erupt on Mellanox Acquisition

CHELMSFORD, Mass. ( TheStreet) -- Voltaire (VOLT) shares surged Monday morning on news of the switchmaker's acquisition by data center specialist Mellanox (MLNX - Get Report).

Shares of Voltaire were rising $2.22, or 34.53%, to $8.65, while Mellanox shares were dropping $1.05 to $24.16.

Mellanox, which makes switches as well as adapters for connecting servers and storage, will pay $8.75 a share for Voltaire in a deal worth around $218 million. The transaction, which has already been approved by the companies' boards, is expected to close in the first quarter of 2011.

The deal ends weeks of speculation about Voltaire's future and is the latest in a string of data center-related acquisitions. IBM (IBM - Get Report), for example, recently acquired Blade Network Technologies and Netezza, while HP (HPQ - Get Report) out-muscled Dell (DELL - Get Report) to acquire storage maker 3Par (PAR).

Cisco (CSCO - Get Report) rival Voltaire was itself recently touted as acquisition bait for IBM, thanks largely to close relationship with Blade Network Technologies.

Voltaire made its name selling InfiniBand switches, but it entered the 10-Gbit/s Ethernet market last year in an attempt to claw share from Cisco's Nexus switch. The 10-Gbit/s Ethernet product is aimed at firms connecting large numbers of servers across multiple data centers, something crucial to firms looking to consolidate IT gear.

During its recent third-quarter results, Voltaire grew its revenue 25% compared to the same period last year and predicted 2010 sales at the top end of its guidance.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
VOLT $0.00 0.00%
CSCO $27.92 0.00%
HPQ $32.53 0.00%
IBM $160.67 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs