EMC Corporation, a developer and provider of information infrastructure technology, yesterday acquired Israeli startup flash-memory storage products maker XtremIO in order to expand its flash-based systems and software product portfolio.
EMC did not disclose the financial terms of the deal, but 451 Research, a New York firm that tracks technology companies, said that EMC paid $430 million for the acquisition.
Founded in 2009 by a group of Israeli high tech veterans, XtremIO develops cutting-edge technology for ''flash'' storage. Its all-Flash, scale-out, enterprise storage architecture is designed to leverage the speed and unique abilities of Flash memory.
The Herzliya-based company has raised only $25 million in two financing rounds from investors including Jerusalem Venture Partners, Giza Venture Capital, Battery Ventures and Lightspeed Ventures.
Jerusalem Venture and Giza Venture hold around 20 – 30 per cent stake in XtremIO.
EMC, which operates an R&D centre in Israel and has acquired nine tech companies with major Israeli operations, said that the acquisition extends its lead in developing and delivering networked storage infrastructures that are dynamically optimised for performance, intelligence, and protection for both physical and virtualised cloud environments.
''The addition of XtremIO complements the range of EMC Flash-based systems and software stemming from EMC's early entry into the Flash storage market in 2008 when it became the first to integrate Flash drives into enterprise storage arrays,'' the Hopkinton, Massachusetts-based company said in a statement.
Pat Gelsinger, president and COO at EMC Information Infrastructure Products said, "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. We fully expect XtremIO technology, once introduced to market, to have a tremendous impact on our customer's ability to leverage the unique advantages of all-Flash storage across many of their most demanding applications."