Pure Storage Nears Deal to Acquire Portworx

(Bloomberg) -- Pure Storage Inc., which provides data storage and cloud services, is nearing a deal to buy Portworx Inc. for as much as $400 million, according to people familiar with the matter.

Pure Storage is set to pay $350 million to $400 million for Portworx, a cloud storage software company, the people said. An announcement could come as soon as Wednesday, said the people, who asked not to be identified as the information is private.

A final agreement hasn’t been reached and negotiations could still be delayed or fall apart, the people said. A representative for Mountain View, California-based Pure Storage declined to comment. A spokesperson for Portworx, based in Los Altos, California, didn’t immediately respond to requests for comment outside of business hours.

Pure Storage went public in 2015 in a $489 million initial public offering, including so-called greenshoe shares. The shares have fallen nearly 11% this year, giving it a market value of about $4.1 billion. The company describes itself as delivering storage as a service and is an Amazon Web Services advanced technology partner, according to a statement.

Portworx provides technology for companies to manage databases and counts Cisco Systems Inc. and Hewlett Packard Enterprise Co. among its backers. The company was founded by those who previously started Ocarina Networks Inc., which was acquired by Dell Technologies Inc. in 2010, according to its website.

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