The Israeli semiconductor company EZchip has been bought by the Silicon Valley internet network company Mellanox Technologies, with the share purchase valuing the company at approximately $811 million.

Mellanox already maintains five offices in Israel. In 2011, Mellanox acquired the Israeli company Voltaire for $208 million.

“The synergies between EZchip and Mellanox create attractive opportunities,” said Eyal Waldman, president and CEO of Mellanox Technologies. “EZchip’s processing solutions allow users to process and analyze, at wire speed, data both within and outside the data center. The solutions from the combined company will enable data center customers to meet the growing demands of data-intensive applications.”

Eli Fruchter, CEO of EZchip, said joining forces with Mellanox creates “a true powerhouse for connectivity and processing.” He noted that the company started in 1999 with many competitors and no customers.

Mellanox will combine employees from both organizations and retain both companies’ existing product lines. The combined businesses currently have approximately 2,400 employees, and have generated combined revenues of $668 million from July 2014-June 2015.

(via Israel21c)

[Photo: TheMarker Online / YouTube ]