Original URL: http://www.theregister.co.uk/2011/10/05/hds_buying_shoden/

Hitachi Data Systems on the acquisition trail again

Shoden buy to create make mega data-systems beast

By Chris Mellor

Posted in Storage, 5th October 2011 14:00 GMT

Hitachi Data Systems has announced its intention to buy Shoden Data Systems. Data systems companies have to stick together, right?

Shoden, a systems integration supplier to data centres, is based in South Africa and has a UK operation as well as others across sub-Saharan Africa. It has been an HDS partner for 11 years, supplying HDS products to its customers. The acquisition is a done deal, subject to approval from the South African Competition Commission and other relevant competition authorities in the African countries in which both companies operate.

HDS wants Shoden to consolidate and bulk up its African business. In its release it says: "According to data from the International Monetary Fund (IMF), 7 of the top 10 fastest growing economies from 2011 – 2015 will be in Africa."

Niels Svenningsen, HDS's EMEA SVP and general manager, said, in a canned quote: “Our proposed acquisition of Shoden is the natural next step in a relationship that has blossomed throughout the years... Together, as a united company, we are committed to continuing the outstanding support given to all of our customers and to continue to grow across Africa.”

No acquisition price was mentioned. It's possibly in the $5m to $100m area – covering quite a large range – and tending more towards the first number rather than the last. The acquisition rate of HDS is increasing, with this acquisition following hard on the heels of BlueArc. Perhaps HDS will strengthen its channel in other geographies too. ®