Dell to buy Force 10 Networks

Deal will beef up vendor’s networking channel

Tags: Dell CorporationMergers and acquisitions
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Dell to buy Force 10 Networks Dell says deal will boost its networking and data centre play. (Getty Images)
By  Manda Banda Published  July 21, 2011

Dell has revealed that it will purchase Force 10 Networks, a move that validates speculation that the PC maker would acquire a networking vendor to give it a broader converged networking and data centre play to favourably compete with rivals HP and Cisco.

Financial terms of the deal were not disclosed but in a statement, Dell described the acquisition as a ‘natural match to its server strength,' and expects the deal to close by the end of summer.

"Dell's approach of offering customers open, capable and affordable solutions aligns with Force 10's approach to offering customers new levels of flexibility, performance, scale and automation which is fundamental to changing the economics of data centre networking," said Brad Anderson, senior vice president of Dell's Enterprise Solutions Group, in a statement.

"We are excited to work with Dell. Combining Dell's global scale, reach and enterprise portfolio with our innovation in high-performance networking provides our customers the best end-to-end solution for today's and tomorrow's data centres," said Henry Wasik, chief executive officer, Force10 Networks.

Dell has been in an acquisitive mode as of late, focusing primarily on storage companies like Compellent. In recent months, speculation held that Dell would look to acquire Brocade or another networking and data centre-focused vendor.

Force 10 Networks based was founded as Turin Networks in 1999 and did about $200 million in revenue last year. The company has a research and development centre in Chennai, India, which Dell said it plans to keep.

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