Dell Announces Intent to Acquire Force10 Networks
Dell announced it has signed a definitive agreement to acquire Force10 Networks, a high-performance datacenter networking leader. Force10’s networking capabilities complement Dell’s datacenter solutions portfolio, enabling it to offer customers a broader range of enterprise offerings.
Dell has taken steps over the past three years to expand its enterprise portfolio to offer customers a complete range of datacenter products and solutions. This includes developing an integrated stack of server, storage, networking and services resources to help streamline operations, reduce IT costs, manage data growth and simplify management. The acquisition of Force10 and investment in networking is a natural complement to Dell’s server strength. According to first quarter 2011 IDC data, Dell is the leading x86 server provider in the United States and No. 2 worldwide.
Force10 is a global technology leader in datacenter, service provider and enterprise networking. It is nearly a $200-million company, based on trailing 12 months revenue, with approximately 80 percent of its business in North America and operating in over 60 countries worldwide. Force10’s Open Cloud Networking is based on open standards, automation and virtualization and is very consistent with Dell’s design philosophy. Force10’s technology allows customers to transform their network infrastructures into an open, reliable and scalable datacenter and cloud computing fabric.
Force10 provides global service and support capabilities around the world through a direct sales force and an extensive network of channel partners and systems integrators. Much like past acquisitions of Compellent and EqualLogic, Dell is committed to maintaining and growing Force10’s channel program. Force10’s customers include leading Web 2.0 and Fortune 100 companies, Internet portals, global carriers, leading research laboratories and government organizations with some of the world’s most demanding network environments.
Distinguishing characteristics of Force10 include:
• Flexible, open automation and management
• Massively scalable core datacenter network at a fraction of the cost
• Automated policy configuration and mobility
Force10 was founded in 1999 and is headquartered in San Jose, CA, with research and development operations based in Silicon Valley. Dell also plans to keep Force10’s existing operations in Chennai, India as it continues to invest in additional engineering and sales capability to grow this business.
The transaction was approved by the board of directors of each company. Additional terms of the transaction were not disclosed. The transaction remains subject to customary conditions and is expected to close in late summer.
