Mellanox Technologies, Ltd., a supplier of end-to-end connectivity solutions for servers and storage systems, has entered into a definitive agreement to acquire Voltaire Ltd., a provider of scale-out data center fabrics.

The terms of the transaction have been unanimously approved by both the Mellanox and Voltaire (News - Alert) Boards of Directors. The transaction is currently projected to close in the first quarter of 2011, subject to certain closing conditions.

Industry analyst opined that the combination of the two companies will strengthen Mellanox’s (News - Alert) position as a premier, end-to-end connectivity solutions provider for the growing worldwide data center server and storage markets.

The combined businesses currently have approximately 700 employees and achieved revenues of $217 million for the twelve months ended Sept. 30, 2010.

“The combination of Mellanox and Voltaire will create a leading provider of connectivity solutions for our customers by leveraging the complementary strengths of our companies. Together, we believe the combined company will be a stronger business partner and system solutions provider, delivering customers a comprehensive range of end-to-end connectivity solutions,” said Eyal Waldman, president, chairman and CEO of Mellanox Technologies, in a statement.

Waldman said that the company welcomes the great talent from Voltaire and looks forward to completing the integration of the employees to create a superior combined company.

“We believe this is a great transaction for our customers, employees and shareholders,” said Ronnie Kenneth, chairman and CEO of Voltaire.

Kenneth said that the company expects the combined company to offer customers the financial strength of Mellanox, industry-leading solutions and world-class development teams that drive innovation and enhance market opportunities.

Officials with Mellanox said that the Voltaire acquisition will strengthen the company’s leadership position in providing end-to-end connectivity systems and will expand its software and product offerings in the growing worldwide data center server and storage markets it serves.