EZchip To Be Bought By Mellanox At 16% Premium

By Tomi KilgoreMarketWatch Pulse

EZchip Semiconductor Ltd. said on Wednesday it agreed to be acquired by Mellanox Technologies Ltd. in a deal valued at about $811 million. Mellanox will pay $25.50 a share in cash for all of EZchip's shares outstanding, which is 16% above Tuesday's closing price of $21.99. Mellanox expects deal to add to adjusted earnings per share as soon as it is completed, which is anticipated to be during the first quarter of 2016. EZchip's stock was still halted in premarket trade for news dissemination. It had run up 38% over the past three months, while Mellanox shares dropped 18% and the S&P 500 lost 8.7%.

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