Cisco Systems Inc, US-based technology firm has announced it plans to acquire IIT-Kanpur and BITS Pilani alumni-founded, Springpath, Inc. a Sunnyvale-based leader in hyper-convergence software for $320 million.
Springpath, which was founded by former VMware executives Mallik Mahalingam and Krishna Yadappanavar in 2012 has developed a distributed file system purpose-built for hyperconvergence that enables server-based storage systems. The acquisition will allow Cisco to continue to deliver next-generation data center innovation to its customers.
The company’s data platform eliminates the need for network storage and integrates into existing management tools to maximise operational efficiency.
“This acquisition is a meaningful addition to our data center portfolio and aligns with our overall transition to providing more software-centric solutions,” said Rob Salvagno, Cisco vice president, Corporate Business Development. “Springpath’s file system technology was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment. I’m excited to be able to provide our customers and partners with the simplicity and agility they need in data center innovation.”
Neither company is a stranger to one another. The purchase follows a longstanding strategic relationship between the companies culminating in the launch of HyperFlex, a fully integrated hyper-converged infrastructure system, early last year.
Cisco first worked with Springpath’s management in 2012, and in 2015 the company led Springpath’s series C financing round. By combining Springpath’s software with the Cisco Unified Computing System, Cisco launched its Hyperflex platform in 2016, which has attracted over 1,800 customers in the past year.
Cisco will acquire Springpath for $320 million in cash and assumed equity awards, plus additional retention-based incentives. The acquisition is expected to close in Cisco’s first quarter of fiscal year 2018, following customary closing conditions and regulatory review.
The company had earlier raised $34 million from a group of venture capital firms, including Sequoia Capital, New Enterprise Associates and Redpoint.
Like this press release? Submit yours here.