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  • jeffreysauctions jeffreysauctions Aug 25, 2012 5:24 PM Flag

    Boston Business Journal-EMC to Acquire FIO?

    Big story today in journal, do google search-wont let me post link
    Boston Business Journal-EMC to Acquire FIO?

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    • Watch EMC's flash storage offering, VFCache, carefully: If it isn't taking off by the first half of next year, two analysts say the Hopkinton data storage giant may look for a strategic acquisition, and Utah-based Fusion-io is a likely target.

      Analysts Alex Kurtz and Amelia Harris of Sterne Agee say EMC (NYSE: EMC) may look to acquire Fusion-io (NYSE: FIO) if its own flash storage efforts don't take off. EMC wants to avoid a redux of what happened 10 years ago, when NetApp (Nasdaq: NTAP) got ahead of EMC in the Network-attached storage (NAS) market.

      "NetApp's upcoming partnership with Fusion-io may also act as an accelerant to EMC considering Fusion-io if that joint product development generates traction as well," the analysts wrote in an Aug. 16 note. "The upcoming refresh of VFCache at VMworld (contacts tell us) will be a critical trend to follow in the coming months as it may reveal a tell on where EMC moves next on their PCIe strategy with Micron (remember EMC sold Quantum DXi before acquiring Data Domain). Ultimately, the window for Fusion-io as an acquisition target would likely be short as it evolves into a much larger purchase ($3B + at this point we estimate) and begins to build out its own networked storage strategy as an independent company."

      Flash PCIe (peripheral component interconnect express) data storage technology is emerging as the new battleground between EMC and NetApp. In May, EMC acquired ExtremIO, a flash storage startup reportedly also courted by NetApp. Fusion-io is only one of a handful of other flash storage startups that could become attractive acquisition targets.

      • 1 Reply to jmcbride383
      • The key part is " the window for Fusion-io as an acquisition target would likely be short as it evolves into a much larger purchase ($3B + at this point we estimate) and begins to build out its own networked storage strategy as an independent company." I think the window is basically the next 30 days. They are announcing new deals nearly every week. With VMWorld this week, I think it will become obvious that FIO is thriving right now and its quickly going to become too expensive for anyone to afford very quickly. I expect $32 this week and yes, I know thats a 10% gain but these aren't just rumors. EMC in particular cannot afford to fall behind NTAP especially with the news that CSCO is looking to acquire them. I think EMC is scared to death right now and has got to do something. Only problem is the FIO bid has got to have a heck of a premium on it. I'd say nearly double to not only get Flynn to do a deal with the enemy and to stop a bidding war before it starts. MAny would say that they'd be better to offer say $45 and see if any bidders materialize. The problem with that is once they materialize you will see a ridiculously high premium paid the acquirer as everybody will want to show how powerful they are and how they wont loose a bidding war. I think EMC is most likely to be "forced" to make a bid within weeks. That said, I think Dell might also be interested. Remember, Michael Dell was a early investor in FIO and surely needs a business growing like a weed like theirs. Although HPQ also should be a bidder, I dont see Whitman making any "hard" decisions as their past acquisitions have been disasters.

        Watch EMC's flash storage offering, VFCache, carefully: If it isn't taking off by the first half of next year, two analysts say the Hopkinton data storage giant may look for a strategic acquisition, and Utah-based Fusion-io is a likely target.
        Analysts Alex Kurtz and Amelia Harris of Sterne Agee say EMC (NYSE: EMC) may look to acquire Fusion-io (NYSE: FIO) if its own flash storage efforts don't take off. EMC wants to avoid a redux of what happened 10 years ago, when NetApp (Nasdaq: NTAP) got ahead of EMC in the Network-attached storage (NAS) market.
        "NetApp's upcoming partnership with Fusion-io may also act as an accelerant to EMC considering Fusion-io if that joint product development generates traction as well," the analysts wrote in an Aug. 16 note. "The upcoming refresh of VFCache at VMworld (contacts tell us) will be a critical trend to follow in the coming months as it may reveal a tell on where EMC moves next on their PCIe strategy with Micron (remember EMC sold Quantum DXi before acquiring Data Domain). Ultimately, the window for Fusion-io as an acquisition target would likely be short as it evolves into a much larger purchase ($3B + at this point we estimate) and begins to build out its own networked storage strategy as an independent company."
        Flash PCIe (peripheral component interconnect express) data storage technology is emerging as the new battleground between EMC and NetApp. In May, EMC acquired ExtremIO, a flash storage startup reportedly also courted by NetApp. Fusion-io is only one of a handful of other flash storage startups that could become attractive acquisition targets.

    • i see nothing///why lie

 
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