|
Dell to acquire storage firm
|
 |
September 8, 1999: 5:04 p.m. ET
Computer maker to buy privately held ConvergeNet for $340M in stock
|
NEW YORK (CNNfn) - Dell Computer Corp. agreed to acquire privately held data-storage technology firm ConvergeNet Technology Inc. for approximately $340 million in stock Wednesday in an effort to solidify its position in the corporate storage market.
ConvergeNet develops data-storage technologies for storage area networks, or enterprise-wide shared storage devices such as disk or tape drives.
The companies made the announcement after Wednesday's market close.
Dell (DELL), the world's No. 2 PC maker, said ConvergeNet's technology will allow its PowerVault storage products to connect to any server running Windows, Linux, Unix, Solaris or NetWare operating systems.
"Our customers want storage technology from Dell that connects with any open-standards server," said Michael Lambert, senior vice president of Dell's enterprise systems group. "The technology we acquire with ConvergeNet will help make that happen."
Under terms of the deal, Dell will exchange 6.9 million of its common stock for all outstanding ConvergeNet shares and options.
Dell said it expects to take a one-time charge of 5 to 7 cents a share for research and development expenses related to the acquisition. The companies expect to close the deal within 60 days.
Dell shares fell 1-3/4 to close at 47-5/8 prior to the announcement. It's shares inched up to 47-7/8 in after-hours trading.
|
|
|
|
|
|
Dell
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
