San Jose, Calif.-based Cisco (NASDAQ: CSCO) said it agreed to acquire Sunnyvale, Calif.-based Springpath Inc., a leader in hyperconvergence software, for $320 million in cash and assumed equity awards, plus additional retention-based incentives.
Springpath was founded in 2012 by Mallik Mahalingam, CTO, and Krishna Yadappanavar. in 2015, the startup raised $34 million in venture capital from New Enterprise Associates, Redpoint, Sequoia Capital, and Stanford University.
Cisco’s acquisition follows a long-standing strategic relationship with Springpath. The companies have worked together since early 2016 to launch HyperFlex, the industry’s first fully integrated hyperconverged infrastructure system. Since then, they have fully aligned on product development and go-to-market strategies.
“This acquisition is a meaningful addition to our data center portfolio and aligns with our overall transition to providing more software-centric solutions,” 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. I’m excited to be able to provide our customers and partners with the simplicity and agility they need in data center innovation,” he added.
The deal is expected to close in Cisco’s first quarter of fiscal year 2018, subject to customary closing conditions and regulatory review.