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Mellanox Acquired Silicon Photonics Developer Kotura for About $82 Million

Mellanox bought Kotura to add silicon-photonics technology and engineering talent for 100Gb/s-and-beyond optical networking. The deal closed in August 2013.
From TheFinanceBase Team4 min to read
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Mellanox announced an agreement on May 15, 2013, to buy privately held Kotura for approximately $82 million in cash, subject to adjustments. The acquisition closed on August 15, 2013. Mellanox sought Kotura’s silicon-photonics technology, products and engineering team to strengthen optical links for 100Gb/s-and-faster networking.

What Mellanox announced in May 2013

Mellanox Technologies Ltd. said it had signed a definitive agreement to acquire Kotura, Inc., a privately held developer of silicon-photonics optical-interconnect technology. The companies’ boards had unanimously approved the transaction. Mellanox expected it to close in the second half of 2013, subject to customary conditions, regulatory approvals and Kotura shareholder approval. The announcement was issued May 15; EE Times reported it on May 16.

The announced consideration was approximately $82 million in cash, subject to adjustments. Mellanox’s announcement described the price and expected timetable; they were not yet proof of a completed transaction. Mellanox’s SEC-filed announcement sets out the terms and conditions.

What Kotura made

Kotura developed optical-interconnect technology based on silicon photonics: using optical components integrated with silicon circuitry to move data as light. Such a link still needs optical and electrical functions—including light generation, modulation, detection, waveguides, packaging and electrical interfaces. Silicon photonics is not simply ordinary electronic processing on a silicon chip, nor does a single chip necessarily provide every element of a deployed network connection.

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Mellanox described Kotura’s platform as integrating multiple high-speed active and passive optical functions on a silicon chip. Its announcement cited a low-power 100Gb/s Optical Engine intended for data-center and high-performance-computing interconnects, and more than 120 granted or pending patents in CMOS photonics and packaging design. These are company-reported descriptions of Kotura’s assets, not independent measures of later performance.

Contemporary EE Times coverage reported that Kotura had roughly 80 employees and shipped its first silicon-photonics chip in 2006. Kotura was principally a technology and component/platform company, not a supplier of complete networking systems; Mellanox sold InfiniBand and Ethernet interconnect products. EE Times’ May 2013 report provides that contemporary context.

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Why Mellanox wanted silicon photonics

Mellanox aimed to strengthen optical connectivity for 100Gb/s InfiniBand and Ethernet and for future systems beyond that speed. Optical links can carry data farther than copper links and support high bandwidth, while integration of optical functions may help increase density. But an optical link also requires optical engines, packaging and conversion between electrical and optical signals; integration does not eliminate those engineering challenges.

Mellanox presented Kotura’s technology as a route to higher-density, scalable connections with lower power and cost, and said owning and controlling the technology could make integration more reliable at 100Gb/s and above. Those were management’s strategic expectations, not independently established outcomes of the acquisition. The company identified high-performance computing, cloud, Web 2.0, enterprise data centers, databases, financial services and storage as potential markets.

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The deal also brought intellectual property and an engineering organization in-house. Mellanox said it planned to establish its first U.S. research and development center at Kotura’s existing location and retain Kotura’s product lines for customer and partner continuity. The announcement identified Kotura’s location as Monterey Park, California; Mellanox listed offices in Sunnyvale, California, and Yokneam, Israel.

The acquisition closed in August 2013

Mellanox completed the Kotura acquisition on August 15, 2013, at an approximately $82 million cash purchase price, subject to working-capital and other adjustments. The completion filing resolves the central uncertainty in the original “to acquire” headline: this was not merely a proposed transaction. The completion announcement confirms the closing.

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Kotura was one part of a broader optical strategy

On June 4, 2013, Mellanox separately announced an agreement to acquire IPtronics A/S for approximately $47.5 million. IPtronics supplied high-speed analog optical-interconnect components, including VCSEL drivers, modulator drivers and transimpedance amplifiers. Mellanox described IPtronics as complementary to Kotura: Kotura brought silicon-photonics capability, while IPtronics added analog components. The companies and technologies should not be conflated, and the $47.5 million figure belongs to the separate IPtronics transaction. Mellanox’s IPtronics announcement explains the complementary portfolio rationale.

At the time, the move fit a wider industry push to control optical-interconnect technology as data-center bandwidth needs rose. Contemporary optics-industry coverage noted Intel’s internal silicon-photonics work and Cisco’s 2012 acquisition of Lightwire. That context indicates a competitive race, not proof that Mellanox’s deal produced a particular market position or commercial result. Optics.org’s contemporary coverage described that landscape.

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  • 【I/O virtualization, multi-VM support】:SR-IOV technology enables efficient management of I/O resources of virtual machines by sharing physical resources. And Infiniband technology fully meets the needs of high bandwidth and low latency in big data, its aggregation on virtual I/O and flat network architecture provide a huge pipeline that can be dynamically distributed on demand to improve availability and load balancing.

What happened to Kotura afterward

Later corporate filings list the former Kotura entity as Mellanox Technologies Silicon Photonics, Inc. Mellanox was acquired by NVIDIA on April 27, 2020. NVIDIA’s closing filing reported consideration of approximately $7 billion; its later accounting disclosure reported total purchase consideration of approximately $7.13 billion. These figures describe NVIDIA’s acquisition of Mellanox, not the Kotura purchase. NVIDIA’s subsidiary list identifies the former Kotura entity, and its closing filing documents the Mellanox acquisition.

The corporate filings establish ownership and the former Kotura name, but do not establish which Kotura-branded products remained available, were renamed or were discontinued by August 2026. Nor do the cited records isolate Kotura’s revenue or establish the acquisition’s return on investment. Mellanox’s announcement forecast $0.01–$0.03 per share of non-GAAP accretion for full-year 2014; that was a forecast, not evidence of the result.

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