EMC to buy data storage firm Isilon for $2.25 bn

NEW YORK, USA: EMC Corp, the world's biggest corporate data storage equipment maker, plans to buy smaller data storage firm Isilon Systems Inc for around $2.25 billion net of cash, the companies said on Monday.

The $33.85-a-share offer represents a 29 pct premium over Isilon's closing share price on Friday. Isilon shares had already risen around 56 percent over the past three months on speculation it could be a strong acquisition target after a bidding war over another data storage company, 3PAR.

The New York Post earlier reported that a deal between the two companies was imminent, despite an earlier disagreement over the price. M&A chatter has been surrounding the red-hot data storage market since the 3PAR bidding war, which Hewlett-Packard won for $2.4 billion earlier this year.

Another data storage provider, Compellent Technologies Inc, held preliminary meetings with bankers to advise it on options including a sale, a source told Reuters last month.