(WEB HOST INDUSTRY REVIEW) — Electrical products manufacturer Emerson Electric Company (www.emerson.com) announced on Tuesday it will acquire network equipment technology provider Avocent (www.avocent.com) for about $1.2 billion to boost its product offerings.
The acquisition will give Emerson the chance to continue to enhance its data center technologies, building on last year’s purchase of data center software provider Aperture.
Emerson’s data center products bring in a considerable amount of income for the company, with revenues totaling $2.6 billion in fiscal 2008.
Avocent’s data center management solutions will improve Emerson’s ability to offer total infrastructure management solutions to its data center customers around the world.
The solutions offer a combination of hardware, software and embedded technologies in a single platform that helps monitor, manage and problem solve in a data center.
Headquartered in Huntsville, Alabama, Avocent generated sales of $657 million in 2008, with nearly 50 percent of those revenues coming from outside the United States. The company’s customers include Yahoo! and Brocade Communications Systems.
Avocent also announced on Tuesday that it signed a deal with global IT solutions firm MindTree, providing the firm with a suite of remote infrastructure management solutions. As a result, MindTree will be able to manage its data center operations control from anywhere in the world.
“Combining Avocent’s technologies, relationships and installed base with Emerson’s power and cooling presence allows us to offer a more compelling solution to our data center customers’ most pressing challenge – energy efficiency,” says David N. Farr, Emerson chairman, CEO and president. “It furthers our customers’ ability to better manage reliability, availability and lifecycle costs through a simple yet comprehensive view of the complete data center physical infrastructure.”
The deal is expected to close around January 1, 2010, the companies said.
In another high-profile acquisition of a data center management firm, Xerox bought Affiliated Computer Services last week for $6.4 billion.
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