Cisco is acquiring hyper-converged software developer Springpath for US$320 million, the companies announced Monday, saying the deal will strengthen Cisco's position in the highly competitive hyperconverged system market.
Cisco and Springpath have been working together since early 2016 when the companies launched HyperFlex, a hyperconverged infrastructure system that competes with Hewlett Packard Enterprise's hyperconverged infrastructure system, HPE SimpliVity. HPE closed its US$650 million acquisition of hyper-converged storage provider SimpliVity in February.
Cisco corporate business development vice president Rob Salvagno said the acquisition was a meaningful addition to the company's data centre portfolio.
"I'm excited to be able to provide our customers and partners with the simplicity and agility they need in data center innovation," he said.
Cisco expects to complete the acquisition by the end of its fiscal 2018 first quarter in October, subject to closing conditions and regulatory reviews. Cisco will pay US$320 million in cash and assumed equity awards, plus additional retention-based incentives.
Cisco already owned an undisclosed stake in Springpath and the vendor was rumored to be on the brink of acquiring Springpath as long ago as August of last year. Cisco also previously attempted to scoop up hyperconverged leaders Nutanix and SimpliVity, the latter before it was bought by HPE, but both deals ultimately fell through.
Springpath's distributed file system for hyperconvergence powers server-based storage systems. The software-defined technology is known as the Springpath HX Data Platform, which runs on Cisco UCS servers to create the HyperFlex system.
Cisco said the acquisition will accelerate the growth of its software-defined infrastructure strategy and drive more next-generation data center innovation.