Dell finalizes acquisition of data center networking provider

Purchase of Force 10 is Dell’s latest investment to broaden its networking portfolio

Dell Inc. took another step to expand its enterprise portfolio of data center products and solutions by finalizing its acquisition of Force10 Networks Inc.

Dell last month announced a definitive agreement to acquire Force10 Networks, a $200 million global technology provider of data center services with headquarters in San Jose, Calif.

Financial terms of the acquisition were not reported.

The acquisition of the high-performance data center networking provider is Dell’s latest investment to broaden its networking portfolio to deliver its Virtual Network Services Infrastructure, the computer giant said in its August 26 announcement.

Dell has taken significant steps over the past three years to expand its enterprise presence as a complete solutions provider, according to the announcement.

“In addition to strategic acquisitions, such as Force10, Dell expects to hire several hundred new team members in engineering, sales and marketing, and services jobs at the Dell Silicon Valley R&D Center,” it added.

Final details of a combined channel program should be done by Oct. 1, said Greg Davis, vice president and general manager for Dell's global commercial channels.

Dell said it expects the transaction to be accretive to earnings in the second half of next year.

Force10’s Open Cloud Networking based on open standards, automation and virtualization matches Dell’s philosophy, the company said, and added that “Force10’s technology is a natural complement to Dell’s existing data center strategy and enables a strong solution alignment with Dell’s server, storage and systems management portfolio.”

“The addition of Force10 Networks technology gives Dell a data center-class networking portfolio, enabling the company to deliver on converged infrastructure,” said Cindy Borovick, vice president of research and data center networking at IDC.

“Force10 Networks technology architecture will integrate well within Dell's virtual data center vision,” she said.

Dell Inc., of Round Rock, Texas, ranks No. 15 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

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