Dell to Acquire ConvergeNet for Storage Technology; Extends Total Storage Market Opportunity to $38 Billion.
ROUND ROCK, Texas--(BUSINESS WIRE)--Sept. 8, 1999--
Continuing its drive to become one of the top three storage vendors in the world, Dell Computer Corporation (company) Dell Computer Corporation - One of the biggest US manufacturers of IBM PC compatibles.
"From notebooks to networks", their slogan says.
http://us.dell.com. (Nasdaq:DELL) today announced a definitive agreement to acquire privately held ConvergeNet Technologies Inc. of San Jose San Jose, city, United States
San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.
ConvergeNet, a storage networking company focused on enterprise data-storage technologies for storage area networks (SAN), has assembled a leadership team with many years of experience from companies such as Hewlett-Packard Co., Storage Technology Corp. (StorageTek) and Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. Inc.
Under the terms of the acquisition, Dell will exchange about 6.9 million shares of Dell common stock for all outstanding shares and options of ConvergeNet. Based on yesterday's closing stock price, the transaction has a current aggregate value of approximately $340 million. Upon completion of the transaction, which is expected within 60 days, Dell will record a one-time charge against after-tax earnings of five to seven cents per share Cents per share
The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for purchased in-process research and development expenses.
The boards of directors of each company have approved the acquisition. Completion of the transaction is subject to customary conditions. Morgan Stanley To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter Dean Witter may refer to:
The acquisition will bring SAN technology to Dell that will enable its current and future PowerVault storage products and other storage systems to connect to any Intel- or RISC-based server running UNIX UNIX
Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). , Solaris, Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. , Windows 2000, NetWare or Linux operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. . This new ability to connect heterogeneous storage systems to servers of all types, regardless of operating system operating system (OS)
Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. , expands Dell's total market opportunity to the entire open-systems storage market, which International Data Corp. estimates will total $38 billion by 2002.
Dell's acquisition of ConvergeNet will allow customers who own or buy current Dell PowerVault Dell PowerVault products include disk enclosures, disk arrays, tape drives, autoloaders, tape libraries, network attached storage and storage area networks. Some of these products are provided through a partnership with EMC Corporation and are further classified as a Dell/EMC products to leverage and protect those investments well into the future, while offering those customers a clear transition path to technology of the future.
"The ConvergeNet technology combined with Dell's efficient, low-cost business model will mean our customers can get leading-edge data-center storage solutions at values unseen before in the industry," said Michael Lambert Michael ("Mike") Allen Lambert (born April 14, 1974 in Honolulu, Hawaii) is an American volleyball player, who was a member of the United States men's national volleyball team that finished in ninth place at the 1996 Summer Olympics in Atlanta, Georgia. , senior vice president of Dell's Enterprise Systems Group.
Lambert continued, "Our customers want storage technology from Dell that connects with any open-standards server. The technology we acquire with ConvergeNet will help make that happen. ConvergeNet's technology fits our strategy to deliver storage area network solutions that speed access to and backup of enterprise data; simplify the configuration, allocation and management of storage systems; and help ensure that data is available all the time."
"ConvergeNet has created a leadership team, a fast entrepreneurial culture and a technology which complements Dell's commitment and direction for its storage business," said Dick Watts, president and chief executive officer of ConvergeNet. "We share a vision of the future of storage with Dell, and believe that the combination of our technology with Dell's dynamic, global business model will significantly change the storage market."
Upon completion of the transaction, Watts will become vice president and general manager of Dell's storage systems division, reporting to Lambert. This organization comprises the combined Dell and ConvergeNet storage teams.
Dell PowerVault Storage
Dell first entered the storage market last year with the introduction of the fibre channel-based PowerVault 650F storage subsystem The part of a computer system that provides the storage. It includes the controller and disk drives. See storage system. , which now offers customers up to two terabytes of data storage in one rack. Dell expanded its line late last year with the SCSI-based (Small Computer System Interface) PowerVault 200S, the PowerVault 130T tape library for high-volume data backup, and the Dell PowerEdge Expandable RAID Controller 2 (PERC PERC
See: Preferred equity redemption stock 2), providing high-performance data storage to PowerEdge servers with SCSI-based storage.
In 1999, Dell announced the PowerVault storage area network solution that was the first SAN from a major systems vendor for Windows NT environments. Dell also announced an original-equipment-manufacturer agreement with Network Appliance Inc. in late 1998 that led to Dell being the first computer vendor to bring Network Appliance's industry-leading storage technology to the Windows NT and Windows 2000 market. Dell launched the PowerVault 700 series of network attached storage products, called filers, in May of this year.
Ranked No. 78 among the Fortune 500 companies and No. 210 in the Fortune Global 500, Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $21.7 billion for the past four quarters. Dell designs, manufactures and customizes products and services to customer requirements and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained through its toll-free number 800/388-8542 or by accessing the Dell World Wide Web site at www.dell.com.
Special note: Statements in this press release that relate to future results and events are based on the company's current expectations. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including the level of demand for computer systems and related data storage products; the intensity of competition; changes in technology; currency fluctuations; the cost and availability of certain key components; and the company's ability to effectively manage product transitions, to minimize excess and obsolete inventory Obsolete Inventory
Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. , to continue to expand and improve its infrastructure (including personnel and systems) and to retain and integrate the acquired company's personnel. Additional discussion of these and other factors affecting the company's business and prospects is contained in the company's periodic filings with the Securities and Exchange Commission.
Dell and PowerEdge are registered trademarks. PowerVault is a trademark of Dell Computer Corporation.
Fortune 500 is a registered trademark of Time Inc.
ConvergeNet is a trademark of ConvergeNet Technologies Inc.
Dell disclaims any proprietary interest in the marks and names of others.