Enterprise software giant Oracle has moved to acquire data storage firm Pillar Data Systems, which is owned by CEO Larry Ellison.
The company said that it won’t be making an up-front payment for acquiring Pillar but has laid out an earning sharing program based on certain goals that Pillar is expected to achieve in the next few years.
Oracle said that the evaluation and the negotiations carried out for the acquisition was done by an independent committee of Oracle’s Board of Directors. The acquisition terms won’t have an impact on Oracle’s financial results, the company said.
Pillar Data Systems, which is headquartered in San Jose, California, provides data storage services to 600 companies spread across 24 countries. The company provides highly scalable SAN Block I/O storage systems.
“The acquisition of Pillar Data Systems provides Oracle with a compelling SAN storage architecture that complements our core strengths,” said John Fowler, Executive Vice President of Systems at Oracle.
“Customers can optimize the value of their Oracle applications, database, middleware and operating system software by running on Oracle’s storage solutions.” he added.
According to an article on Channel Register, the investors of Pillar will receive cash payment before November 30 2014, if the company manages to generate more revenue in 2014 than the combined net loss from 2011 to 2014.