Cisco has announced plans to acquire hyperconvergence software developer Springpath for USD 320 million in cash. California-based Springpath has developed a distributed file system purpose-built for hyperconvergence that enables server-based storage systems, said Cisco. The purchase follows a long-standing strategic relationship between the companies culminating in the launch of HyperFlex, a fully integrated hyperconverged infrastructure system, in early 2016.
The acquisition is expected to close by the end of October, following customary closing conditions and regulatory review. The purchase price includes assumed equity awards, plus additional retention-based incentives
Cisco said it first met Springpath's management in 2012, and in 2015 the company led Springpath's series C financing round. The combination of Springpath's software with the Cisco Unified Computing System led to the launch of the company's Hyperflex platform in 2016, which has attracted over 1,800 customers in the past year.
Cisco said the takeover will help it grow in software-defined systems for data centres. Hyperconverged infrastructure, a software-based system combining compute, storage, networking and virtualisation systems in a single platform, is the fastest growing segment of the data centre market, Cisco said.
