Data storage giant EMC has announced it has acquired the privately held flash storage start-up XtremIO. While it has not disclosed the financial terms of the deal, reports are circulating that EMC splashed out US$430m to take the Israeli-based company under its wing.
The Israeli business news site Globes has reported that EMC paid US$430m for XtremIO.
In its press release, EMC described XtremIO, which was set up in 2009, as being "one of the world’s premier Flash storage architecture pioneers". However, XtremIO has yet to generate revenue from its storage systems and is still in beta trials with customers.
The company has raised US$25m in venture capitalist funding since its 2009 foray and has been undertaking field trials with large enterprise and service provider customers in the US, Europe, and Israel up to now.
EMC said XtremIO’s technology would complement its range of Flash-based systems and software.
"XtremIO brings to EMC amazing technology with a fantastic team that’s captured praise from early-view customers and many of the industry’s foremost thinkers," said Pat Gelsinger, president and chief operating officer, EMC Information Infrastructure Products, in an official statement.
EMC said it did not expect the all-cash transaction to have a material impact to EMC GAAP or non-GAAP EPS for the full 2012 fiscal year.
The company said it will divulge more about the XtremIO acquisition at EMC World in Las Vegas later this month.