A Closer Look at the HDS BlueArc Deal

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David Vellante over at Wikibon answers the logical question: Why was Hitachi Data Systems (HDS) the logical buyer of BlueArc?

HDS was the only logical exit for this company because no other firm would pay a lofty multiple for an asset where nearly half of the revenue goes poof into the wind on day 1. HDS was the only firm that would pay the premium and the only company where a decent valuation made sense. The bottom line: Getting acquired was the best way to avoid an IPO, and HDS was the sensible buyer.

Vellante’s analysis of the deal is very insightful. Read the Full Story.

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