Dell has agreed to buy EqualLogic, a Nashua, New Hampshire-based provider of storage area network solutions specially designed for virtualisation, for USD1.4bn in cash.
Dell has agreed to buy EqualLogic, a Nashua, New Hampshire-based provider of storage area network solutions specially designed for virtualisation, for USD1.4bn in cash. EqualLogic has raised USD52m in funding since 2001 from venture capital firms including Charles River Ventures, Sigma Partners, Focus Ventures and TD Capital Ventures.
EqualLogic is a provider of high-performance iSCSI storage area network solutions, the fastest-growing part of the storage business according to Dell, which says the acquisition will strengthen its product and channel leadership in simplifying and virtualising IT for customers globally.
‘Our customers will be dealing with the largest increase in data we have seen in our history over the next few years,’ says Michael Dell, chairman and chief executive of the firm that bears his name. ‘Leading the iSCSI revolution will help Dell accelerate IT simplification and virtualisation.’
The acquisition of EqualLogic is expected to close in the fourth quarter of Dell’s 2008 financial year 2008 or early in the first quarter of 2009. The company expects the acquisition to be dilutive of earnings per share by USD0.02 to USD0.05 for the 2009 and 2010 financial years respectively.
After completion of the purchase, Dell plans to expand EqualLogic’s channel-partner programmes with current and future EqualLogic-branded products, and to incorporate EqualLogic technology into future generations of its Dell PowerVault storage line, available through the channel and direct from Dell.
EqualLogic makes data storage systems that simplify the way enterprises of all sizes store and protect information. EqualLogic’s PS Series storage area network solutions provides management capabilities aimed at reducing the time and money IT staff spend on data storage. Since shipping its first product in June 2003, EqualLogic has added more than 3,200 customers in 30 countries and has sales offices throughout North America, Europe and the Asia-Pacific region.
