Struggling NetApp's Stock Is Down on News It Is Buying SolidFire

Looking to boost its presence in the market for data centers using flash storage, NetApp said that it will buy SolidFire for $870 million in cash.
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Looking to boost its presence in the market for data centers using flash storage, NetApp (NTAP) said on Monday that it will buy SolidFire for $870 million in cash, reports The Deal's Chris Nolter. NetApp CEO George Kurian told investors in a call after the market close on Monday that the market for all-flash data centers is the fastest-growing segment of the storage business. Still, shares of NetApp declined $0.58 cents, or more than 2 percent, to $27.02 in after-hours trading. Founded in 2009, SolidFire of Boulder, Colo., has backing from New Enterprise Associates, Valhalla Partners, Novak Biddle Venture Partners, Samsung Ventures and Greenspring Associates. NetApp, which has an $8 billion market cap, has struggled to grow its business. The top has declined for nine consecutive quarters, UBS analyst Steven Milunovich wrote after the company's November earnings release, reflecting 'both a weak industry and ebbing NetApp position.' The Deal's Richard Collings has details from New York.