Hewlett packard acquires emulex: strengthening computer peripherals industry

In the fast-paced world of technology, companies are constantly looking for ways to expand their offerings and stay ahead of the competition. In a recent development, Hewlett Packard (HP) announced its acquisition of Emulex Corporation, a leading provider of computer network connectivity, monitoring, and management hardware and software. This strategic move is expected to strengthen HP's position in the computer peripherals industry and enhance its ability to offer comprehensive solutions to customers.

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Who is Emulex?

Emulex Corporation, founded in 1979 by Fred B. Cox, has established itself as a trusted provider of I/O connectivity products. Its Ethernet and Fibre Channel-based connectivity offerings are widely used in server and storage products from OEMs such as Cisco, Dell, EMC Corporation, Fujitsu, Hitachi, Huawei, IBM, NetApp, and Oracle Corporation. Emulex's products have gained a reputation for their reliability, performance, and compatibility.

A Brief History of Emulex

Emulex started as a supplier of data storage products and data communications equipment for the computer industry. By 1983, the company had gained enough recognition to advertise its products as essential items for computer users. Emulex's products were extensively used in Digital Equipment Corporation's VAX and PDP-11 systems.

In 1992, Emulex spun off a separate company called QLogic. This move allowed Emulex to focus on its core business and further strengthen its position in the industry.

In 2000, Emulex made a significant acquisition by acquiring Giganet for $645 million. This acquisition expanded Emulex's product portfolio and customer base, contributing to its growth and success in the following years.

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In 2013, Emulex made another strategic move by acquiring Endace, a New Zealand-based company specializing in network monitoring and security solutions. This acquisition further enhanced Emulex's capabilities and positioned the company as a leader in the industry.

The Acquisition by Hewlett Packard

In April 2009, Broadcom made a proposal to acquire Emulex for $764 million, which was later increased to $925 million. However, Emulex's board of directors recommended against the sale, and Broadcom eventually withdrew its offer.

In February 2015, Avago Technologies Limited announced its intention to acquire Emulex for $8 per share. Avago, a spinoff of Hewlett Packard, merged with Broadcom later that year. The acquisition of Emulex by Avago Technologies further strengthened its position in the industry and allowed it to offer more comprehensive solutions to its customers.

Avago Technologies assumed the Broadcom name and continued to expand its product portfolio and customer base. The acquisition of Emulex by Avago Technologies, now Broadcom, was a strategic move to enhance its capabilities and position itself as a leader in the computer peripherals industry.

The Impact of the Acquisition

The acquisition of Emulex by Hewlett Packard is expected to have several positive impacts on both companies and their customers.

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Firstly, the acquisition will enable Hewlett Packard to expand its offerings in the computer peripherals industry. Emulex's expertise in I/O connectivity products will complement Hewlett Packard's existing product portfolio and allow the company to provide comprehensive solutions to its customers.

Secondly, the acquisition will enhance Hewlett Packard's competitiveness in the market. By acquiring Emulex, Hewlett Packard will gain access to a larger customer base and strengthen its position against competitors.

Lastly, the acquisition will lead to increased innovation and technological advancements. The combined resources and expertise of Hewlett Packard and Emulex will drive the development of new and improved products that meet the evolving needs of customers.

The acquisition of Emulex by Hewlett Packard is a strategic move that will benefit both companies and their customers. It will enable Hewlett Packard to expand its offerings, enhance its competitiveness, and drive innovation in the computer peripherals industry. With this acquisition, Hewlett Packard is well-positioned to provide comprehensive solutions and stay at the forefront of technological advancements.

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