Networking gear kingpin Cisco Systems Inc. could look to buy Aliso Viejo’s QLogic Corp., an analyst speculated Tuesday.
RBC Capital Markets telecom analyst Mark Sue went as far as to say Cisco should buy QLogic to hasten its relatively slow pace of acquisitions this year.
Cisco is likely to look for a company to acquire that’s active in a new area of storage technology called virtualization, according to a report on Barrons.com.
Virtualization is tech speak for the ability to “virtually” combine servers and other data storage computers into what appears to be a single source.
It helps multiple sources of data, often under different operating systems, appear as a single source, saving space and power.
Several local companies are making pushes into virtualization, including QLogic rival Costa Mesa-based Emulex Corp. and Aliso Viejo-based Quest Software Inc., among others.
QLogic, which makes electronics for data storage networks, might be a good match for Cisco, a deft acquirer that typically scoops up a dozen companies a year.
“One company that might fit well into Cisco in terms of size and product set may be QLogic,” Sue said.
He said that it’s unclear if the two companies are talking, but that a deal “would make sense.”
It’s the latest in a string of chatter about potential takeover talks between the two.
The companies already have a pattern of close ties and share some of the same customers, including big makers of servers and top corporations with sprawling data networks.
QLogic’s been on a tear lately. Shares are up about 45% on a recent market value of roughly $2.5 billion.
Cisco had a recent market value of about $140 billion.
