Dell Spent $1.25 Billion On An Acquisition, But Doesn't Want Anyone To Know

Michael Dell


Dell today acquired SonicWall for terms it wouldn’t disclose. However, the New York Times says the deal cost Dell $1.25 billion.Apparently Dell feels $1.25 billion isn’t a material number its investors need to be bothered over.

A spokesperson for Dell told Business Insider that Dell never reports the terms on acquisitions of private companies and that it would not confirm or deny the $1.25 billion amount.

SonicWall’s majority owner, Thoma Bravo, paid $717 million in cash for a controlling stake in SonicWall in 2010, the Times also notes.

SonicWall makes security gear to protect corporate networks. It competes with Cisco, Juniper and CheckPoint Technologies and claims 300,000 customers in 50 countries. It has 950 employees and is based just down the road from Cisco in San Jose, Calif.

This is another signal that Dell has stopped thinking of itself as a PC company and has no intention of letting Cisco and HP rule the data centre with unified servers which combine a high-end server, storage and network gear into one device.

Dell acquired network gear maker Force10 in July. The company is clearly getting the puzzle pieces it needs to compete with Cisco and HP head on. It is expected to do for that unified server market what it has done to the other areas where it competes: lower prices.

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