Mellanox Technologies (Nasdaq: MLNX) is buying EZchip (Nasdaq: EZCH) in a deal valued at $811 million, as M&A in the semiconductor industry continues.
Yokneam, Israel-based EZchip makes semiconductors for security, video and storage products. Mellanox, a Sunnyvale, California, chip maker, says the acquisition will expand its data center capabilities.
Mellanox is paying $25.50 per share. EZchip's shares closed at $21.99 on Sept. 29, before the deal was announced.
The deal is just one of many semiconductor acquisitions announced recently. In September, Diodes Inc. (Nasdaq: DIOD) made a $400 million deal for Pericom Semiconductor Corp. (Nasdaq: PSEM). In June, Intel Corp. (Nasdaq: INTC) agreed to buy Altera to defend its presence in data centers.