Transactions

Cisco Puts Up $320M for Springpath

Says deal factors into its software-focused, next-gen data center product strategy 8/21/2017 10:07 AM Eastern

Cisco Systems has cut a deal to acquire Springpath, the company behind a distributed file system that’s built for “hyperconvergence” for server-based storage systems, for $320 million.

Cisco said the acquisition of the Sunnyvale, Calif.-based company will help it shore up its next-gen data center strategy, and follows a collaboration between the companies for the 2016 launch of HyperFlex. Cisco also led Springpath’s Series C financing round in 2015.

"This acquisition is a meaningful addition to our data center portfolio and aligns with our overall transition to providing more software-centric solutions," Rob Salvagno, Cisco vice president, corporate business development, said in a statement. "Springpath's file system technology was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment. I'm excited to be able to provide our customers and partners with the simplicity and agility they need in data center innovation."

The $320 million price tag includes cash and assumed equity awards, plus additional retention-based incentives.

Cisco expects to close the deal in its fiscal Q1 2018, adding that the Springpath team will join Cisco’s Computing Systems Product Group, led by Liz Centoni.

Cisco has more than 1,800 customers on HyperFlex, Salvagno noted in this blog post.

Want to read more stories like this?
Get our Free Newsletter Here!