Networking equipment provider Cisco agreed on Monday to acquire one of its portfollio companies, US-based hyperconvergence software producer Springpath, for $320m in cash and assumed equity awards.
Founded in 2012 and formerly known as Storvisor, Springpath provides hyperconvergence software that converts servers into data storage systems.
The software can be integrated into a subscriber’s existing management tools, making network data storage unnecessary while increasing the customer’s operational efficiency.
Springpath and Cisco had been collaborating on a hyperconverged infrastructure system called HyperFlex since early 2016 and have since partnered on product development and commercialisation.
The company had raised $34m from Stanford University as well as venture capital firms Sequoia Capital, New Enterprise Associates and Redpoint Ventures when it emerged from stealth in early 2015.
Cisco’s corporate venturing subsidiary, Cisco Investments, co-led a series C round for Springpath the same year, according to a blog post by Rob Salvagno, vice-president of corporate business development for Cisco.
Springpath is also listed as a portfolio company on Cisco Investments’ website, though Salvagno did not however mention the size of the round or whether it formed part of the funding disclosed by the company when it came out of stealth.
Salvagno said: “This acquisition is a meaningful addition to our data centre portfolio and aligns with our overall transition to providing more software-centric solutions.
“Springpath’s file system technology was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment. I am excited to be able to provide our customers and partners with the simplicity and agility they need in data centre innovation.”