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Dell assures EqualLogic customers of painless acquisition

One of the main concerns with EqualLogic customers when Dell (NASDAQ: DELL) announced it was acquiring the company was a question of customer and reseller support continuing at the level where it had been. As many of us know, an acquisition can disrupt normal operations as smaller companies are folded into the large bureaucracies of newer parent companies. The delicate balance of not ticking off existing customers in the process is a huge concern.

Nothing reassures customers of a small but important company like a celebrity CEO directly addressing issues before issues even come up. Dell CEO Michael Dell is making his case directly to existing EqualLogic customers and retail channel partners by stating that the acquisition will be a smooth process and EqualLogic customer support will remain at the high levels where it has always been.

Continue reading Dell assures EqualLogic customers of painless acquisition

Dell to become aggressive force in data storage?

Dell (NASDAQ: DELL)Is Dell (NASDAQ: DELL) ready to begin a slew of acquisitions? Once loathe to make large buys, the company has acquired storage provider EqualLogic in the recent past, a sign that the world's second-largest PC maker sees a bright future for corporate storage. No, we're not talking those 10'x20' rentals for the boat, but for digital storage, as in hard drives.

Sun Microsystems
(NASDAQ: JAVAD) purchased StorageTek a few years ago, and then IBM Corp. (NYSE: IBM) bought NovusCG just recently, so storage technology and solutions providing is apparently a hot ticket these days. Dell, one to spend hardly anything on any company compared to the competition, spent $1.4 billion for EqualLogic.

Continue reading Dell to become aggressive force in data storage?

EqualLogic has reason for an IPO

With the explosion of data in corporate America, there's a big need for intelligent storage systems. In fact, there are other key drivers, such as the increase in security threats as well as the emergence of server virtualization. But, of course, companies don't want to spend a ton of money on this technology, right?

Well, EqualLogic is attacking these issues.

And, now the company has filed to go public.

Founded in 2001, EqualLogic is the developer of high-performance storage products – and is focused on the mid-sized enterprise market (which is a sector that is certainly price sensitive).

Basically, the company's products have the same kind of capabilities of more advanced systems. What's more, it's easy to add systems without downtime, which allows for a "pay-as-they-grow" business model.

The company more than 2,500 customers (across 30 countries). From 2004 to 2006, revenues surged from $30 million to $68.1 million.

Although, EqualLogic does face tough competition. Some of the rivals include EMC (NYSE: EMC), Dell I(NYSE: DELL), and IBM (NYSE: IBM).

The lead underwriters on the IPO include Goldman Sachs (NYSE: GS) and Credit Suisse (NYSE: CS). The proposed ticker symbol is "EQLX."

You can find the prospectus at the SEC website. Also, if you want to check out more IPO filings, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

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Last updated: November 11, 2009: 04:39 AM

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