Oracle Invests in Mellanox

Acquires 10.2% of Ordinary Shares

Oracle has announced that it has made a strategic investment in Mellanox Technologies to further align product vision and maximize partnership efforts.

Mellanox’s InfiniBand is the premier switch fabric for enterprise data centers and high performance computing, providing superior scalability, higher throughput and lower latency in comparison to alternative communications technologies.

Oracle and Mellanox have had a long-term strategic partnership that allows Oracle to leverage Mellanox's InfiniBand products to create differentiated Oracle solutions like Exadata and Exalogic. A strong and friendly relationship with Mellanox is critical to Oracle.

Mellanox intends to make Oracle Solaris a core supported operating system platform to help meet increasing customer demand.

In recognition of the importance of InfiniBand and Mellanox to Oracle, Oracle has acquired 10.2% of Mellanox’s ordinary shares in the open market. This stake is for investment purposes only, to solidify common interest in the future of InfiniBand.

Oracle has no plan or intention to make an unsolicited and unfriendly offer to take over Mellanox.

Mellanox is expected to continue to work with all technology vendors, in addition to Oracle, such as Dell, HP, IBM, and others, to maximize the usage of InfiniBand as the preferred data center communications fabric.

“InfiniBand is by far the fastest and most efficient switch fabric for running enterprise data centers,” said Oracle CEO Larry Ellison. “Mellanox has been instrumental in maintaining InfiniBand's immense competitive lead over Ethernet. We are a big supporter of the company and this investment based upon our belief in the InfiniBand technology and in the Mellanox management team.”

“Mellanox has had a long standing relationship with Sun, and now Oracle, that goes back over eight years,” said Mellanox CEO Eyal Waldman. “We are pleased that Oracle has chosen to make this strategic investment in Mellanox and look forward to an expanding partnership that will maximize the potential of InfiniBand.”