EMC Boosts Its Flash Cred With ScaleIO Buy
Storage giant EMC said today that it will acquire Israel-based ScaleIO, a company that builds software meant to manage flash-memory-based storage systems. The deal boosts its capability to deliver flash memory, an increasingly prevalent technology in data centers.
Financial terms aren’t being disclosed, but the deal is valued at north of $200 million by 21c, an Israeli business publication. The deal marks an exit for Greylock Partners and Norwest Venture Partners, who had invested about $12 million.
The deal is EMC’s second purchase of an Israel-based flash player. Last year, it nabbed XtremIO, a maker of storage arrays, for $430 million.
In a note to clients today, analyst Brian Marshall said ScaleIO’s customers include SAP and a unit of investment giant Fidelity. “In our view, EMC has proven itself as one of the most astute at acquiring ‘best-of-breed’ technology and leveraging EMC’s channel and scale to create revenue synergies,” he wrote.