Nvidia to Buy Mellanox for $6.9 Billion in Data Center Push (3)

Nvidia Corp. agreed to buy chipmaker Mellanox Technologies Ltd. for $6.9 billion, gaining expertise to help it push into the growing market for data center components.

The $125-a-share cash offer for Mellanox is a 14 percent premium to the March 8 close of $109.38. But traders may not be sold on the idea that the deal will go through, with Mellanox trading up 8.6 percent to $118.62, still short of the bid from Santa Clara, California-based Nvidia. That gap may reflect concern that chip deals have foundered on regulatory approval delays and blocks amid a trade dispute between China and ...