Mellanox Technologies is expected to raise $50 million at a post-money company value of $250 million, reports Dolev & Abramovitch Hi-Tech Information.

The American fund Bessemer is expected to lead the round, and two major Israeli venture capital funds have indicated they may chip in.

Mellanox's existing investors Sequoia Capital, U.S. Venture Partners, Raza Venture Management, and Intel Capital are also expected to participate.

Mellanox is a fabless that designs semiconductors for Internet infrastructure. It was founded in 1999 by CEO Eyal Waldman, among the founders of Galileo Technology, an Israeli company purchased by Marvell (Nasdaq:MRVL).

The company is developing a family of communications products based on the InfiniBand standard, which supports 2.5 gigabit and 10 gigabit traffic speeds.

During 2000 Mellanox secured $25 million at a post-money company value of $125 million. It employs 130 people at a development center in Yokneam, and offices in Santa Clara, California.