The Israeli company has been under pressure to sell its business from activist hedge fund Starboard Value LLP, which owns a 10.5 interest in the company. This July it forced three directors off Mellanox’s board, installing candidates it backed.
Peter Feld, a Managing Member of Starboard, said at the time the company has “potential for future growth and significantly higher profitability.”
What does Mellanox Do?
Mellanox sells networking hardware used in data centers, including Ethernet switches, where Cisco rules the market, and cables for connecting switches to other hardware.
As well as Microsoft, Mellanox also provides products for Dell and HPE, to name some of its larger clients, with products ranging from cables to its system-on-a-chip (SoC) family BlueField.
It names Chinese giant Alibaba as among its major new client wins, early December saying its RDMA over Ethernet (RoCE) 25Gbps ConnectX “RoCE” network adapters have been deployed in Alibaba Infrastructure Services’ production network.
Mellanox in October reported record quarterly revenue of $279.2 million, up 24 percent, year on year.