Oracle buys storage firm Pillar
The tech bellwether sent shockwaves through the tech sector last year when it spent $7.4 billion to acquire ailing Sun Microsystems, which now forms the hardware basis of its Exadata database machine.
In addition to Pillar and Exadata, Oracle's storage portfolio also includes ZFS, a network attached storage technology acquired from Sun, as well as a number of tape products that were also swallowed up as part of the Sun deal.
ZDnet states Pillar Data Systems is majority owned by Oracle's CEO, Larry Ellison. It was founded in mid-2005 with Ellison contributing around $150 million of his personal wealth to its initial war chest.
Wall Street Journal explains that the billionaire invested in Pillar for nearly a decade and loaned the company a total of $544 million. He owns a 55% stake in the closely held firm.
Oracle didn't provide a value for the acquisition, which it says was negotiated by its independent directors. The business software giant declined to comment beyond a press release and documents filed with regulators.
The move is unusual in a few respects. Pillar's investors, including Ellison, will get no money up front, but will only be paid in three years if the start-up hits financial targets, according to Oracle's filing. But if Pillar's total losses under Oracle exceed its third-year revenue, no money will be paid.
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