Dell to buy Force10 for undisclosed amount
Tech giant Dell (NASDAQ:DELL) said that it has entered a definitive deal to buy private supplier of datacenter networking products, Force10.
The transaction, expected to close in late summer, is subject to customary closing conditions. Financial terms and conditions were not disclosed in Wednesday's statement. Both company boards have approved the deal.
Dell has taken major steps over the years to expand its datacenter products and services, which include developing an integrated stack of servers, storage and networking to streamline operations, reduce IT costs, manage data growth and simplify management for the data centres that house them, it said.
"Today's datacenter networks are too complex and require too much manual intervention. What worked in the past is no longer viable in the virtual era," said Brad Anderson, senior vice president of Dell.
"Dell's approach of offering customers open, capable and affordable solutions aligns with Force10's approach to offering customers new levels of flexibility, performance, scale and automation which is fundamental to changing the economics of datacenter networking," noted Anderson.
Based on trailing revenue in the last 12 months, Force10 is a $200 million company. It operates its business in over 60 countries, with 80% of its operations in North America.
Force10's "Open Cloud Networking" technology allows customers to transform network infrastructures into an open datacenter and cloud computing fabric.
San Jose, California-based Force10, founded in 1999, has research and development operations based in Silicon Valley.
Dell said it plans to keep Force10's existing operations in Chennai, India as it continues to invest in more engineering and sales capability to grow the business.
Dell's shares fell 5 cents, to $17.37 Wednesday on Nasdaq.
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