The privately held EqualLogic, based in Nashua, N.H., is the leading provider of the Internet-based storage technology known as iSCSI. It aims to make it easier for businesses to store data by using existing networks rather than installing a costly new dedicated fiber optics network.  Mr. Dell said iSCSI technology represented the fastest-growing segment of the overall storage industry.  Andrew Reichman, an analyst with Forrester Research, said the deal would help Dell meet the growing storage demands of small and medium-sized companies that typically lack dedicated technology employees to deal with complex storage issues.  “These companies have been seeing tremendous data growth, and they need help dealing with it,” he said. “EqualLogic allows them to do that in an easy and cost-effective way. I’d say that supports Dell’s strategy, which is about simplification.”  Mr. Reichman said that as part of Dell, EqualLogic would benefit from the company’s willingness to invest heavily in research and development.  In a research note yesterday after the announcement, analysts at Goldman Sachs said: “The die is cast. Dell is now beginning to build an independent presence in storage.”  EqualLogic reported revenue of $68.1 million in 2006 and a net loss of $500,000. During the first six months of 2007, it reported revenue of $53.2 million and a net loss of $1.5 million. Dell executives said the deal would reduce Dell’s earnings by 2 to 5 cents a share for fiscal 2009 and 2010, excluding the amortization of intangibles. Shares of Dell fell 8 cents yesterday to $29.97 after the deal was announced.  Mr. Dell said the company would continue to grow through acquisitions and industry partnerships as well as by expansion of existing business. “We told you we were going to make some changes this year,” he said.  EqualLogic’s technology is part of a growing category known as virtualization, which allows a single computer to function like multiple computers. Virtualization has attracted independents like VMware and industry giants like Microsoft to vie for a share of the market.  EqualLogic filed for an initial public offering in August, but no date had been set.  The acquisition, already approved by the boards of both companies, is awaiting regulatory approval. Dell expects the deal to close late this year or early next year.  A version of this article appears in print on , on Page C6 of the New York edition with the headline: Dell to Pay $1.4 Billion For Storage Company. Order Reprints| Today's Paper|Subscribe
The deal comes as the company is attempting to stage a corporate turnaround and reclaim ground lost to more nimble competitors.