June 19, 2018 / 7:59 PM / a month ago

Mellanox, Starboard select directors to join board -sources

NEW YORK, June 19 (Reuters) - Mellanox Technologies Ltd , a chipmaker based in Israel and the United States, has picked three directors to join its board as part of a settlement with activist investor Starboard Value LP, sources familiar with the matter said on Tuesday.

Mellanox is planning to add two directors from Starboard's proposed nominees including Greg Waters, the chief executive officer of semiconductor company Integrated Device Technology Inc and Jon Olson, a former chief financial officer at programmable chipmaker Xilinx Inc, three sources said asking not to be named because the matter is private.

The company and the activist have mutually agreed on adding another independent director, Jack Lazar, a former chief financial officer at camera maker GoPro Inc, the sources added.

Mellanox could announce these board appointments as early as Tuesday. It will not expand its 11-person board so these new directors will replace sitting directors, but it was not clear who will leave.

As part of the settlement, Starboard may appoint a direct representative to the board at a later date if the company does not reach certain operating metrics, the sources said.

Mellanox declined to comment and Starboard could not be reached for comment.

Reuters previously reported that Mellanox was nearing a deal with Starboard.

Reporting by Liana B. Baker in New York; Editing by Lisa Shumaker

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