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RealTime IT News

EMC Makes $300 Million Buy

Looking to extend its industry lead in a fast-growing segment of the data storage market, EMC , of Hopkinton, has acquired privately held CrosStor Software for $300 million in stock.

CrosStor makes high-performance software for networked storage systems. The company is located in South Plainfield, N.J., and employs about 100 people. It will remain in the Garden State and there will be no job cuts as a result of the purchase, an EMC spokesman said.

"More than 25 percent of the storage we sell is now connected directly to a network," said Joe Tucci, EMC's president and COO. "CrosStor brings EMC some of the world's most advanced software technology for networked storage as well as an impressive and deep team of experienced developers with rich heritage in open systems."

According to Dataquest, EMC controls nearly 35 percent of the networked storage market. Its nearest competitor, IBM has 22 percent. Other companies in the sector include Compaq Computer.

The acquisition of CrosStor comes about three months after EMC bought Avalon Consulting Group, a Denver company that makes software to manage vast amounts of data in video and other rich media formats. Like Avalon, CrosStor also has had a working relationship with EMC, before the deal went through.

Shares of EMC were up 4.875, or 5.4 percent, to 95.875. In the last 52 weeks, the stock has been as high as 104.938 and as low as 35.062.