Cisco buys out SAN maker
- 22 August, 2002 10:48
Networking equipment maker Cisco Systems will buy Andiamo Systems, a manufacturer of storage switching products for the storage area networking (SAN) market, in an all-stock deal, the companies announced on Tuesday.
Cisco already owns part of Andiamo, a privately held company headquartered in San Jose, California, and is exercising its right to obtain the remainder of the company for up to $US2.5 billion, the companies said in a statement.
The final purchase price will be determined shortly before the deal closes, which is expected to be sometime between February and April 2004, during Cisco's third fiscal quarter, but no later than July 31, 2004, Cisco and Andiamo said.
The closing price will be determined by a number of factors, including sales of Andiamo products in a three-month period shortly before closing, along with Cisco's sales and market capitalisation, the companies said.
Andiamo produces storage switches that use intelligence about stored application data to grant prioritised access to that data. As part of its deal with Andiamo, Cisco announced on Tuesday that the range of multilayer intelligent storage switches developed by Andiamo will be sold under the brand name "Cisco MDS 9000", and will be available between October and December, the companies said.
Andiamo was founded in January of last year and employs about 270 people, the companies said.
Cisco, also headquartered in San Jose, has been moving to increase its presence in the SAN market over the past year through investments in startup companies such as Andiamo and the storage-virtualisation vendor StoreAge Networking Technologies. Cisco has also been releasing its own storage products, including the SN 5420 storage router for transporting data over IP (Internet Protocol) using the iSCSI (Internet Small Computer System Interface) protocol, and a storage switch that supports Fibre Channel, SCSI and Gigabit Ethernet.