Dell Inc. said it has agreed to purchase storage
area network solutions provider EqualLogic for $1.4 billion, marking the largest acquisition in the company's history, according to a spokesperson.
The deal adds to a slew of smaller transactions made by the company since Michael Dell reassumed the CEO position in January.
The proposed EqualLogic deal furthers the company's plan to offer a wider range of services to its information technology clients in response to changes occurring in the marketplace, according to Dell.
Storage is Dell's fastest-growing business unit and the company is pushing to increase its offering in that segment, which is also witnessing huge demand from corporations seeking safe storage for customer data and other information.
"Our customers will be dealing with the largest increase in data we have seen in our history over the next few years," said chairman and CEO Dell in a statement announcing the EqualLogic deal.
"Leading the iSCSI revolution will help Dell accelerate IT simplification and virtualization and will drive the Dell value proposition into more areas of the enterprise storage business," he added.
The EqualLogic transaction would be Dell's fourth acquisition this year as the company takes steps to further deepen its offerings to the IT market.
In August, Dell bought ASAP Software for $340 million and Zing Systems Inc. for an undisclosed amount. One month earlier, Dell acquired Silverback Technologies Inc., also without disclosing the terms of the deal.
When announcing the ASAP transaction, Dell disclosed a set of values it said would underpin its future operational activities in the IT world.
The company said it would work to reduce IT complexity, help customers reduce their spending on IT by cutting down on "army of consultants" and lower the impact of information technology on the environment.
The EqualLogic moves Dell towards those ideals, according to the company, which said the transaction would help it develop "the best storage lines for our customers."
Dell said the boards of directors at Dell and EqualLogic have approved the transaction although it is still subject to "regulatory approvals and customary closing conditions."