Oracle said Wednesday it has invested in Mellanox Technologies, a company whose chips help speed the flow of data among computers.
Oracle bought 10.2 percent of the Mellanox's shares on the open market. Mellanox's market value was $718 million before the announcement Wednesday.
Oracle CEO Larry Ellison announced last month that he's added semiconductor companies to his shopping list. Mellanox was widely considered a target because its technologies are key to some of Oracle's most important new products. Oracle said it won't make an "unsolicited and unfriendly" takeover offer.
The news sent Mellanox's shares soaring 12.9 percent, or $2.75, to $23.50 in extended trading Wednesday.
Oracle is known for its business software, but it is now selling computer hardware, such as servers and data-storage machines.