Tech giant Oracle set to buy Pillar Data Systems
Oracle, the multinational computer technology corporation, announced last year its acquisition of Pillar Data Systems, a storage portfolio previously owned by Sun Microsystems. This acquisition adds to Oracle's storage portfolio and complements its core strengths.
The acquisition is significant as Pillar Data Systems' technology repurposes commodity disk drives for enterprise storage, improving performance by storing frequently accessed data at the outer perimeter of the disk.
John Fowler, Oracle's Executive Vice President for Systems, stated that the acquisition provides Oracle with a compelling SAN storage architecture. The deal was evaluated and negotiated by an independent committee of Oracle board members, ensuring a fair and transparent process.
The acquisition structure includes a performance-based compensation component for Oracle's CEO, Larry Ellison. According to the SEC filing, Ellison's payment condition is tied to Pillar bringing in more revenue in the third year post-acquisition than it loses over the next three years combined. Ellison and fellow Pillar shareholders will be compensated based on Pillar's ability to meet these performance targets.
The specific terms of Ellison's compensation are outlined in the SEC filing, with the transaction set to transfer company funds to Ellison's personal coffers based on a "100% earn out" structure. This means that Ellison's compensation is entirely dependent on Pillar's financial performance post-acquisition.
Customers can optimize the value of their Oracle applications by running on Oracle's storage solutions, and the acquisition of Pillar Data Systems is expected to enhance Oracle's storage capabilities, benefiting both the company and its customers.
It is important to note that the search results mostly focus on topics such as Larry Ellison’s net worth surge, Oracle stock performance, and unrelated acquisitions or business moves, but they do not mention the terms of compensation or conditions tied to the Pillar Data Systems acquisition. Therefore, specific information on performance-based compensation conditions for Larry Ellison in this deal is not readily available.
In conclusion, the acquisition of Pillar Data Systems by Oracle is a strategic move that strengthens Oracle's storage capabilities and offers a performance-based compensation structure for Oracle's CEO, Larry Ellison. The deal is expected to benefit both Oracle and its customers, as they can now run their applications on improved storage solutions.
The acquisition of Pillar Data Systems, with its innovative technology for enterprise storage, reinforces Oracle's position in the business and finance sectors, as the company's SAN storage architecture will be further bolstered. The deal also includes a performance-based compensation component for Oracle's CEO, Larry Ellison, ensuring both his personal gains and the company's storage capabilities are linked to Pillar's financial success in the subsequent years.
