Voltaire Inks Software Licensing Deal with IBM

The provider of scale-out computing fabrics for data centers stands to earn $17 million in licensing frees through 2012 from the IBM contract.

Voltaire Ltd., a leading provider of scale-out data center fabrics, said the company signed a software license and development agreement with IBM Corporation. Under the terms of the agreement, Voltaire will license selected software to IBM.

Under the terms of the agreement, subject to reaching certain milestones and acceptance criteria, Voltaire expects to receive license fees and non-recurring engineering fees totaling approximately $17 million through 2012, the majority of which Voltaire expects to receive in 2011. Voltaire is entitled to receive ongoing support fees based on sales volume following the completion of integration and commercial rollout.

The deal with IBM follows news that Voltaire signed an agreement on November 29, 2010 to be acquired by Mellanox Technologies, Ltd. The acquisition is subject to approval by Voltaire's shareholder and other conditions.

Founded in 1997, Voltaire, headquartered in Chelmsford, Mass and Ra’anana, Israel, specializes in scale-out computing fabrics for data centers, high performance computing and cloud environments.

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