Tech Dealmaker Awards

Dell

Dell Inc. of Round Rock, Texas, acquired Nashua, N.H.-based storage provider EqualLogic Inc. from investors Focus Ventures, Charles River Ventures, Sigma Partners, TD Capital and TD Capital Ventures for approximately $1.4 billion in cash on Nov. 4, 2007.

Dell planned to integrate EqualLogic’s Internet Small Computer System Interface (iSCSI), a storage networking standard, into their own storage products.

“Dell saw EqualLogic as a leading provider of high-performance iSCSI SAN which, through patented storage virtualization technology, simplifies the way mid-size enterprises retain, access, manage and protect their data,” Dell spokesman David Graves said. “This is another important step in Dell’s drive to simplify IT in enterprise products and for mid-sized customers.”

When Dell made the move for EqualLogic, iSCSI storage was one of the fastest-growing opportunities in the storage arena, and Dell’s investment validated iSCSI, Graves said. The deal also put EqualLogic’s iSCSI technology under the wing of Dell’s massive sales organization, which gave the EqualLogic brand more and larger customer accounts worldwide.

“Other players, such as HP, felt compelled to react and later purchased a smaller iSCSI competitor,” Graves said. “Also, it was part of Dell’s strategy to lead in the virtualization space with a storage offering tailored to meet the growth of virtualization.”

The deal was also part of Dell’s strategy to expand its sales through Value Added Reseller channels, where EqualLogic had strong roots, he said.

— Bridget Botelho

Category

Hardware

The Deal

Dell Inc. acquires storage vendor EqualLogic Inc. for $1.4 billion on November 4, 2007

Key Executives

Dell — chairman and CEO Michael Dell, senior vice president Brad Anderson, vice president and general manager of Dell Storage Darren Thomas; EqualLogic — CEO Don Bulens, CFO Richard S. Haak, vice president of engineering Paula Long, vice president of marketing John Joseph

Deal advisers

Financial: EqualLogic — Credit Suisse Group, Goldman Sachs & Co.
Legal: EqualLogic — WilmerHale; Dell — Vinson & Elkins LLP

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  Preston Productions
  Trinity Communications

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