Dell Pays $1.4B For EqualLogic
Dell says it will pay $1.4B in cash to buy EqualLogic, which sells storage units for virtualization. This is huge win for management and investors, who put in only $52M. Backers include Charles River Ventures, Sigma Partners, Focus Ventures and TD Capital.
EqualLogic had exected to complete an IPO by the end of this year and had filed an S1. For 2006, EqualLogic had $68M in revenue and lost $4.3M. In the first nine months of 2007, it had $91M in revenue and lost $1.9M.
Storage has become Dell's fastest-growing business unit and the company is pushing to increase its offering there with EqualLogic.
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