US-based computer company Dell has acquired data company Force10 Networks, paying a reported $700m.
Dell bought Force10 after it had filed for a $100m flotation. Terms were undisclosed, but news provider Wall Street Journal said Dell had paid $700m.
Advanced Equities, an investment and advisory boutique which is the largest shareholder in Force10 Networks and helped the networking equipment maker raise several rounds of venture capital, was removed as an underwriter for the portfolio company’s initial public offering.
Force10 said Advanced Equities would be defined under Financial Industry Regulatory Authority regulations as having a conflict of interest. Advanced Equities owns 28.2% of Force10’s shares, with venture capital firm New Enterprise Associates owning 9.8%.
Advanced Equities has purchased $66.4m in Force10 stock and warrants since 2007, according to the IPO prospectus. The firm also acted as a placement agent for several private financing rounds, for which it was paid fees of $8.1m, according to Dow Jones VentureWire that first reported the story.