A new update on the acquisition rumor mill has solid-state enterprise storage company Fusion-io in talks for a potential acquisition by Dell.
According to a report on Seeking Alpha, Fusion- io’s share price quickly jumped by more than seven percent on Friday after a tweet from the investor Doug Kass linked the two firms. The tweet picked up on an item from the subscription-based
market news site Ran Squawk, which
apparently reported that Fusion-io turned down a bid from Dell for $33 a share.
Is there anything to this? Or is it simply tech rumor? Who knows.
But Dell has made a number of acquisitions in the storage market in recent years, having acquired iSCSI SAN vendor EqualLogic and fellow SAN specialist Compellent.
Fusion-io recently released its third quarter 2012 financial results at the end of last month, posting a record revenue of $94.2 million for the fiscal third quarter of 2012, up 40% from $67.3 million for the same
quarter of 2011 and up 12% from $84.1 million for the prior quarter. Net loss
for the fiscal third quarter of 2012 was $4.7 million, or a net loss per diluted
share of $0.05.
FIO's previous close was $21.41 per share.