Fusion-io, Inc. a provider of a next-generation shared data decentralization platform, today announced that it has entered into a definitive agreement to acquire IO Turbine, Inc., a provider of caching solutions for virtual environments. Under terms of the agreement, Fusion-io will pay up to approximately $95 million, subject to purchase price adjustments, for all outstanding securities of IO Turbine. The consideration is payable in cash and stock, provided that the cash portion may not exceed $35 million. The transaction is expected to close by the end of August 2011, subject to final closing conditions.

The acquisition is a key part of Fusion’s strategy to enable enterprise customers to increase the utilization, performance and efficiency of their datacenter resources and extract greater value from their information assets. Having partnered closely for a number of months, Fusion-io and IO Turbine have a shared philosophy for solving datacenter inefficiencies. The integration of IO Turbine’s software into Fusion’s platform will enable traditional storage infrastructures to keep up with the increasing demands of virtualized servers and expands Fusion’s market opportunities to both new and existing customers.

“IO Turbine’s software is uniquely architected to take advantage of flash memory in the server to solve the I/O bottlenecks, the inhibitor to the adoption of enterprise virtualization,” said David Flynn, Chairman and Chief Executive Officer of Fusion-io.

“We believe integrating ioMemory and IO Turbine adds a critical and previously missing performance component to virtualized IT environments that will accelerate the adoption of Fusion-io technology. This acquisition also underscores our focus on providing customers with an enterprise solution that features software and hardware components designed to accelerate their business’ full suite of applications.”