Dell to buy software company in its biggest acquisition effort
US giant computer maker Dell announced Monday it will buy EqualLogic, a data storage firm, for $1.4 billion as part of its effort to sell more products to small and medium-sized business customers.
The acquisition will be the largest ever for the Texas-based Dell and the fourth announced this year by the PC maker. The deal is expected to close by early next year. EqualLogic, a privately-held company that had filed plans for an initial public offering, supplies systems that make it cheaper and easier for businesses to store vital data. According to Dell, EqualLogic’s technology constitutes the fastest segment of the storage market.
Dell, whose dominance in the PC and server market has been recently replaced by rival Hewlett-Packard, is seeking to bolster its storage business and generate more sales among medium-sized businesses or smaller. The new acquisition effort represents the latest of a series of attempts by Dell to reach out to the market with products specifically designed for small and medium-sized businesses, instead of with devices merely reconfigured from larger-market products. Although Dell is paying a relatively hefty price for EqualLogic, which currently has more than 300 employees and reported $68 million in sales last year, it might have been forced to pay more if it waited too long. EqualLogic filed plans last month to raise $125 million via an IPO, and the successes of other data storage providers in the stock market suggest that investors would give the company a high valuation. (people.com.cn)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.