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DALLAS (AP) -- Dell said Monday it will buy data storage systems provider EqualLogic Inc. for $1.4 billion in cash to ramp up one of its business segments that is already expanding rapidly. The deal was announced as EqualLogic prepared for an initial public offering. Round Rock-based Dell Inc. said the deal would reduce earnings by 2 to 5 cents per share for fiscal 2009 and 2010. The figure excludes the amortization of intangibles. EqualLogic's software lets a single computer function like several machines, which means companies can spend less on hardware and energy to run data centers. Research firm IDC estimates spending on so-called virtualization software and services will exceed $15 billion worldwide by 2011, up from $6.5 billion last year. EqualLogic filed for an IPO in August, and company executives planned to begin an investor road show on Tuesday. No date had been set for the stock sale. Software virtualization company VMware Inc. went public in August in the largest tech IPO since Google's three years earlier. EqualLogic, based in Nashua, N.H., has more than 3,200 customers in 30 countries. Dell shares fell 25 cents to $29.80 in midday trading. The deal is expected to close early next year.
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