Dell Inc. to buy Ocarina Networks
Dell Inc. (Nasdaq: DELL) is expected to buy Silicon Valley-based hardware and software maker Ocarina Networks Inc., officials said Monday.
The Round Rock-based computer maker, which employs about 16,000 in Central Texas, said Ocarina will be rolled into its storage technology business unit, which includes enterprise array EqualLogic. The deal is expected to close this month for an undisclosed amount.
The move is part of the PC company's hopes to expand into more service business, which began with the purchase of Perot Systems Corp. Dell reported $1.9 billion in revenue from the sector in the fourth quarter last year, a 51 percent increase from the same three months a year earlier. Services now make up about 13 percent of its revenue.
Ocarina was founded in 2007. Dell said it does not plan to move the company's San Jose, Calif. operations.
Dell shares were up 2.87 percent at market close Monday, selling at about $13.44 per share. Stock has sold at a high $17.52 and low $11.72 in the past 52 weeks.
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