HOPKINTON, Mass. (AP) - The data storage company EMC Corp. has reached a deal to buy Isilon Systems Inc. for $2.25 billion in cash, the company said Monday.
It is offering $33.85 per share for the Seattle-based company, a 29 percent premium over Isilon's previous closing share price of $26.29.
EMC Corp. said Isilon will expand the breadth of products it can offer customers for storing big amounts of data involved in applications such as gene sequencing and streaming online video.
Combined with EMC's Atmos storage system, it should grow into a $1 billion-a-year business for EMC by the second half of 2012, the company said.
The boards of both companies have approved the deal, and EMC expects to close the acquisition by year-end. The company said the deal will not have any impact on its 2010 earnings, and it reaffirmed its 2010 financial guidance.
Isilon shares surged 29 percent in premarket trading after the New York Post first reported the deal. The stock climbed $7.62 to $33.91. EMC shares edged up 2 cents to $21.72.