It's not the first time NVIDIA's quarterly events have heard the phrase about the intention to get the approval of the deal with Mellanox at the beginning of this year. Experts argue that the company's stock price will rise in any outcome, even if the deal with NVIDIA falls apart.
Last year, NVIDIA announced its intention to acquire the assets of the Israeli developer of high-speed interfaces for $6,9 billion. By mid-February, there were still no clear signs that a deal was close. It is still awaiting approval from the Chinese antitrust authorities. Susquehanna experts are considering three possible scenarios: the collapse of the transaction, its completion, as well as improving the financial conditions for the seller. All three options are beneficial for the Israeli company, according to analysts.
If approval is received before June 125, the buyback price per share will be $160. Failure to complete the transaction in the long term will lead to an increase in the value of Mellanox shares to $145 per share. Finally, the revision of the financial terms of the deal will raise the rate to $122,41. The current market value of the company's shares is $31. Last quarter, Mellanox increased revenue by XNUMX%, beating analysts' expectations.
Source: 3dnews.ru