Overland Acquires Adaptec's Snap Server NAS Business To Further Extend the Reach
of its End-to-End Data Protection Offerings
Top-Selling NAS Servers Will Enhance Overland's Growth as a Premier Provider of
Data Protection Solutions
SAN DIEGO - June 30, 2008 -
Overland Storage, Inc., today announced that it has acquired the
Snap Server NAS business from Adaptec Inc.,
including the brand and all assets related to Snap Server networked and desktop
storage appliances. The acquisition extends Overland's vision, reach and
strategy for delivering end-to-end data protection to its customers and partners
with the addition of best-in-class NAS and replication solutions. The net
purchase price was $3.6 million, with $2.1 million paid in cash upon closing of
the transaction, and the remainder to be paid in 12 months.
The
Snap Server product line broadens Overland's
capabilities by adding distributed NAS while also strengthening central and
remote office data protection. Snap Server leads the NAS market with more than
200,000 units shipped. The acquisition will enable Overland to address the $1.2
billion SMB NAS market, which according to IDC continues to grow by at least 15
percent annually. The features and functions of the Snap Server product line
position it well to target the three fastest growing market segments:
distributed NAS, centralized data protection for remote sites and backup to
disk.
This acquisition enables Overland
to provide its customers and partners with much-needed NAS functionality that
complements the company's well established REO® disk-based backup VTL, NEO® and
ARCvault™ tape automation products along with
ULTAMUS® RAID general-purpose SAN storage. The addition of the Snap Server
business is important to Overland in a number of ways. First, it adds a
best-in-class distributed NAS offering to the company's product portfolio,
helping Overland achieve its goal of providing “end-to-end data protection
solutions” to SMB customers and distributed enterprises. Second, the acquisition
immediately adds approximately $18 million in annual revenue to the company's
run rate, which should provide Overland with the ability to leverage its
existing sales force, marketing resources and infrastructure. Finally, the
acquisition contributes a significant amount of proprietary intellectual
property (IP), which should strengthen the company's intrinsic value, along with
a strong and cohesive development team to promote further growth of the Snap
Server product line.
“We believe that the
cross-pollination of existing Overland IP with the
Snap Server IP will yield innovative features
and products that will strengthen all our product offerings individually, as
well as improve their interoperability,” said Vern LoForti, president and CEO of
Overland Storage. “Snap Servers are pervasive in the marketplace and we intend
to leverage this position to continue the Snap tradition of simple, reliable,
easy-to-use appliances. We also plan to extend the Snap reach by exploring
emerging market segments such as the ever-increasing demands for
high-performance, cost-effective, scalable file-based storage to accommodate the
rapid rise of video surveillance and video archiving applications. Although the
acquisition initially will negatively impact our P&L, our goal is to make the
Snap business cash-flow positive by the third quarter of our fiscal year ending
June 30, 2009.”
“The sale of the Snap Server
business allows us to focus on strengthening our leadership position in the
Unified Serial RAID controller business, leverage our iSCSI assets and continue
to streamline the company's operations,” said S. “Sundi” Sundaresh, president
and chief executive officer, Adaptec Inc. “We are extremely pleased to sell the
Snap Server NAS business to Overland; its management team shares Adaptec's
commitment to product quality, technology development and customer service.”
Snap Servers featuring NAS
functionality—specifically, Snap Server
650, Snap Server
520, Snap Server
410, Snap Server
210 and Snap Server
110—provide expandable capacity from 1TB to
88TBs with a combination of SATA and SAS drives. In addition to these products,
Overland also acquired the proprietary Snap Server GuardianOS operating system
and all licenses, patents, inventories and fixed assets relating to the Snap
business. Overland will assume all Snap customer support obligations. Also, the
Milpitas, Calif.-based Snap Server team of approximately 50 people will be
joining Overland, including sales, marketing, engineering and support. All
existing Snap Server customers will continue to receive full service and
support.