August 21, 2017
Cisco announced today its intent to acquire Springpath, Inc., a Sunnyvale, Calif.-based provider of hyperconvergence software. Springpath has developed a distributed file system purpose-built for hyperconvergence that enables server-based storage systems. The companies have worked together since early 2016 to launch HyperFlex, the industry’s first fully integrated hyperconverged infrastructure system.
“This acquisition is a meaningful addition to our data centre portfolio,” said Rob Salvagno, Cisco vice president, corporate business development. “Springpath’s file system technology was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment.”
In a blog posted following the announcement, he wrote that hyperconverged infrastructure is projected to be a US$6 billion opportunity by 2020 according to IDC, and is the fastest growing segment in the data centre space.
Cisco will acquire Springpath for US$320 million in cash and assumed equity awards, plus additional retention-based incentives. The acquisition is expected to close in Cisco’s first quarter of fiscal year 2018, following customary closing conditions and regulatory review.