Fusion-io Acquires Hybrid Storage Company NexGen For $119 Million
Fusion-io has announced this week that they have acquired NexGen for $119 million. The deal includes $114 million in cash and $5 million in stock. Fusion-io will be adding around 50 NexGen employees to their team through the acquisition.
NexGen is known for making hybrid storage arrays that can be integrated into solid-state storage and hard disk drives.
Fusion-io has already been partners with NexGen by offering the flash technology in NexGen’s products. Through the acquisition, Fusion-io will be able to directly sell the boxes rather than being at a relationship level with OEMs.
Fusion-io’s recently reported a decline of 7% year-on-year to $87.7 million. The company’s net loss was $20 million compared to $4.7 million a year earlier.
“Many SME businesses have lean IT teams and budgets, making it critical to offer an integrated and affordable entry point for flash powered application acceleration that delivers consistent performance, even under demanding workloads like VDI and analytics,” stated Fusion-io CEO and chairman David Flynn. “The hybrid NexGen solution combines memory attached flash and disk on leading server platforms to provide a system tuned to deliver performance, price and capacity. With this acquisition, we will maintain the current NexGen product model as we transition to supporting customers’ preferred server platforms with our OEM partners.“