Mellanox Technologies, Ltd. (MLNX) Acquires Kotura For $82 Million

Posted May 16, 2013

Mellanox Technologies, Ltd. (NASDAQ:MLNX), a provider of Ethernet and InfiniBand host bus adapters, based in Sunnyvale, California and Yokneam, Israel, has acquired a photonics startup company called Kotura for $82 million in cash.  This deal is expected to close in the second half of 2013.  Kotura is known for designing photonics chips that lets signals pass between chips using light instead of electronics.  This makes the communication of chips faster, which is essential for data centers.

The Kotura chip can deliver around 100 gigabits per second inside of a data center.  The fiber-based transceiver is on a board next to the CPU or inside of a switch.  Kotura will eventually be able to expand to deliver a terabit per second (Tbps).  It is currently used in high-performance computing clusters.  Kotura’s VP of marketing for Government Contracts & Industry Relations Arlon Martin said that their customers are building products for the high-performance computing sectors.  Kotura’s goal is to bring low-power and less expensive optical parts into racks of servers that can be scaled up to terabit per second capacities.

Mellanox plans to continue offering the Kotura transceiver and open up a research center in Monterrey Park, California, according to GigaOm.  ?Operating networks at 100 Gigabit per second rates and higher requires careful integration between all parts of the network. We believe that silicon photonics is an important component in the development of 100 Gigabit InfiniBand and Ethernet solutions, and that owning and controlling the technology will allow us to develop the best, most reliable solution for our customers,? stated Mellanox Technologies president, CEO, and chairman Eyal Waldman.

Prior to the acquisition Kotura raised funding from ARCH Venture Partners, Fuse Capital, GF Private Equity, and several others.  Kotura has been selling products since 2006.