EMC grabs Isilon Systems -

EMC has signed on the dotted line to acquire network attached storage company Isilon Systems.

Under terms of the agreement, EMC will pay $33.85 per share in cash in exchange for each share of Isilon for an aggregate purchase price of approximately $2.25 billion, net of Isilon's existing cash balance.  

According to the announcement the boards of directors for both companies have unanimously approved the terms of the agreement. The deal, which is subject to customary approvals, is expected to be completed late this year. However, EMC has said it is not expected to have a material impact to EMC's full-year 2010 GAAP.  

Isilon is claimed to be the leader in the fast-growing "Scale-out NAS" segment, which IDC projects will grow on average approximately 36 percent annually reaching an estimated $6 billion dollars in 2014.  

The collaboration will mean EMC will be able to offer low-cost storage infrastructure for managing the massive amount of data produced by a new generation of applications in markets such as life sciences, media and entertainment, such as online streaming, and oil and gas (for example seismic interpretation.)

EMC expects the combined revenue of the two storage offerings to reach a $1 billion run-rate during the second half of 2012.

In connection with this announcement, EMC is has revised all of its previously issued business outlook for 2010. It now expects consolidated revenues of $16.9 billion, $0.91 in consolidated GAAP diluted earnings per share, and $1.25 in consolidated non-GAAP diluted earnings per share, which excludes the impact of restructuring and acquisition-related charges, stock-based compensation expense, and intangible asset amortization.

For 2010, consolidated restructuring and acquisition-related charges, stock-based compensation expense, and intangible asset amortization are expected to be $0.02, $0.23 and $0.09 per diluted share, respectively.