HP To Acquire StorageApps For $350M

HP to acquire StorageApps for $350 million in stock.
Hewlett-Packard has agreed to acquire StorageApps Inc., a storage-management provider, for $350 million in stock.

Upon completion of the deal, which is subject to regulatory and shareholder approval, StorageApps will become a wholly owned subsidiary of HP.

HP execs say StorageApps' storage-virtualization products strengthen HP's federated storage-area-management strategy, which is designed to help customers manage their growing storage needs with greater flexibility. Storage virtualization lets customers use storage devices from different vendors to add capacity and move data among the devices, independent of the server operating system or network infrastructure.

HP's move to add storage-virtualization products to its line of business is just what it needs to become a dominant force in the storage industry, says Steve Duplessie, a senior analyst with Enterprise Storage Group. Storage virtualization is a relatively new idea, but Duplessie says HP is being aggressive and staying ahead of the market by buying into it now. "They have the clout and the power to bring storage virtualization to the market," he says.

StorageApps is HP's second acquisition in two weeks. Last week, the company strengthened its position in business-continuity and disaster-recovery services when it agreed to buy Comdisco Inc.'s availability-services business unit for $610 million in cash.

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