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Mergers and Acquistions News

Categories: Hardware

November 15th 2010, 17:36PM

US data storage equipment maker EMC Corporation will acquire Seattle, Washington-based Isilon Systems Inc, a network attached storage (NAS) firm, for approximately $2.25 billion (£1.4 billion) in cash, or $33.85 per share.

EMC is tapping into the burgeoning NAS sector with its acquisition, with Isilon at the forefront of the fast-growing segment.

Market intelligence firm IDC forecasts that NAS will grow, on average, approximately 36 per cent each year, reaching an estimated $6 billion by 2014.

EMC and Isilon will offer low-cost storage solutions for so-called 'Big Data', which represents the enormous amount of data produced by new technologies like gene sequencing (life sciences), online media streaming (media) and seismic interpretation (energy and fuel).

"The unmistakable waves of cloud computing and 'Big Data' are upon us," Joe Tucci, chairman and chief executive officer of EMC, said.

"Customers are looking for new ways to store, protect, secure and add intelligence to the vast amounts of information they will accumulate over the next decade," he added.

The transaction is expected to be completed later this year and is subject to customary approvals.

Analyst Bill Choi told Reuters he expects consolidation to continue in the sector.
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