Mellanox $811m acquisition of EZchip moves closer
EZchip's largest shareholder Raging Capital has now agreed to support the deal.
The $811 million acquisition of EZchip Semiconductor Ltd. (Nasdaq:EZCH; TASE:EZCH) by Mellanox Technologies Ltd. (Nasdaq:MLNX) now looks likely to go ahead. EZchip's largest shareholder, Raging Capital of New Jersey, which holds a 8% stake in the Israeli company, has relinquished its opposition to the deal and now says it will support a merger at the shareholders meeting on January 19.
Raging Capital said in a statement, "As Raging Capital has articulated previously, we believe EZchip has leading edge technology, and is well-positioned to capitalize on the emerging trends of SDN/NFV and white box networking and we believe EZchip is worth more than $25.50 per share. Through our efforts, EZchip and Mellanox agreed to amend their merger agreement to provide for a Go Shop process, but no superior offer emerged from that process. Consequently, under the current circumstances, we believe the best available option for EZchip's shareholders is to accept the transaction with Mellanox."
EZchip's largest shareholder Raging Capital has now agreed to support the deal.
The $811 million acquisition of EZchip Semiconductor Ltd. (Nasdaq:EZCH; TASE:EZCH) by Mellanox Technologies Ltd. (Nasdaq:MLNX) now looks likely to go ahead. EZchip's largest shareholder, Raging Capital of New Jersey, which holds a 8% stake in the Israeli company, has relinquished its opposition to the deal and now says it will support a merger at the shareholders meeting on January 19.
Raging Capital said in a statement, "As Raging Capital has articulated previously, we believe EZchip has leading edge technology, and is well-positioned to capitalize on the emerging trends of SDN/NFV and white box networking and we believe EZchip is worth more than $25.50 per share. Through our efforts, EZchip and Mellanox agreed to amend their merger agreement to provide for a Go Shop process, but no superior offer emerged from that process. Consequently, under the current circumstances, we believe the best available option for EZchip's shareholders is to accept the transaction with Mellanox."
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2016
07/01/2016, 12:59
Globes correspondent
globes.co.il |
