June 29, 2011 – Oracle announced a proposed buyout of Pillar Data Systems, a storage area network hardware and software provider that was already primarily owned by Oracle CEO Larry Ellison.

Oracle stated that the acquisition is meant to bolster the speed and efficiency with its storage products. Pillar Data Systems’ portfolio runs SAN Block I/O storage systems for managing SAN or network attached storage (NAS) together or on their own from one platform.

John Fowler, Executive Vice President of Systems at Oracle, said in a news release that the acquisition “complements our core strengths.”

“Customers can optimize the value of their Oracle applications, database, middleware and operating system software by running on Oracle’s storage solutions.”

With headquarters in San Jose, California, Pillar Data Systems has 325 employees, and 600 customers in 24 countries, according to its website. It started 10 years ago with funding from Ellison’s private equity firm, Tako Ventures LLC.

An independent committee of Oracle’s board of directors evaluated and negotiated the deal, consisting of a 100 percent earn-out acquisition with no upfront payment, according to a news release on the deal. The acquisition is subject to closing conditions and is expected by Oracle to close in July.

Fowler and Oracle President Mark Hurd plan to follow up the acquisition announcement with a Webcast recap of its storage strategies on Thursday, which you can register for here.

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