Nvidia Corp to buy Mellanox Technologies for $6.8 billion

SAN FRANCISCO: Nvidia Corp agreed to buy chip maker Mellanox Technologies for $6.9 billion, gaining expertise to help it push into the growing market for data center components.

Nvidia is paying $125 a share in cash for the American-Israeli company, which makes chips used to speed the flow of information across computer servers.

That’s a 14% premium to its Friday close of $109.38 with the target’s shares surging in pre-market trade on Monday.