Consolidation Hits Storage Switch Market - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Hardware & Infrastructure

Consolidation Hits Storage Switch Market

McData scoops up Computer Network Technology in an all-stock transaction worth about $235 million.

Leading high-end storage switch vendor McData Corp. said today that it plans to acquire Computer Network Technology Corp. for around $235 million in a stock transaction. CNT is a top vendor of switches and other products for extending local storage networks across wide area networks, with a strong presence in Europe.

McData hopes the buy will bring it additional visibility overseas, and the vendors also expect increased efficiency in manufacturing and sales. Partners of the two vendors include Dell, EMC, and IBM.

CNT shareholders are expected to receive 1.3 shares of McData stock for every share of CNT stock they hold. And the CNT stockholders should end up holding around 24% of the value of the new company.

"There needs to be some consolidation in the market," says James Opfer, an IT analyst at Gartner. "With this acquisition, there's significant product overlap, but there are complementary customers."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Becoming a Self-Taught Cybersecurity Pro
Jessica Davis, Senior Editor, Enterprise Apps,  6/9/2021
News
Ancestry's DevOps Strategy to Control Its CI/CD Pipeline
Joao-Pierre S. Ruth, Senior Writer,  6/4/2021
Slideshows
IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
Register for InformationWeek Newsletters
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll