Overland Acquires Adaptec's Snap Server NAS Business to Further Extend the Reach of Its End-to-End Data Protection Offerings
30 June 2008 - 9:00PM
PR Newswire (US)
Top-Selling NAS Servers Will Enhance Overland's Growth as the
Premier Provider of Data Protection Solutions SAN DIEGO, June 30
/PRNewswire-FirstCall/ -- Overland Storage, Inc. (NASDAQ:OVRL)
today announced that it has acquired the Snap Server NAS business
from Adaptec Inc. (NASDAQ:ADPT), 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(R) disk-based backup VTL, NEO(R) and ARCvault(TM) tape
automation products along with ULTAMUS(R) 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" Sandaresh, 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.
Additional information will be provided in a Form 8-K to be filed
with the Securities and Exchange Commission in connection with the
transaction, as well as during Overland's fiscal 2008 fourth
quarter conference call currently scheduled for August 7, 2008.
About Overland Storage Overland Storage is a market leader and
innovative provider of smart, affordable data protection appliances
that help midrange and distributed enterprises ensure
business-critical data is constantly protected, readily available
and always there. Overland's award-winning products include NEO
SERIES(R) and ARCvault(TM) tape libraries, REO SERIES(R) disk-based
appliances with Virtual Tape Library (VTL) capabilities, ULTAMUS(R)
RAID SAN-based appliances and Snap Server NAS-based appliances.
Overland sells its products through leading OEMs, commercial
distributors, storage integrators and value-added resellers. For
more information, visit Overland's web site at
http://www.overlandstorage.com/ Except for the factual statements
made herein, the information contained in this news release
consists of forward-looking statements that involve risks,
uncertainties and assumptions that are difficult to predict. Words
and expressions reflecting optimism, satisfaction or disappointment
with current prospects, as well as words such as "will", "believe,"
"hopes," "intends," "estimates," "expects," "projects," "plans,"
"anticipates" and variations thereof, identify forward-looking
statements, but their absence does not mean that a statement is not
forward looking. Such forward-looking statements are not guarantees
of performance and the company's actual results could differ
materially from those contained in such statements. Factors that
could cause or contribute to such differences include the inherent
and significant risks of integrating a new acquisition, possible
delays in new product introductions and shipments; market
acceptance of the company's new product offerings; the ability to
maintain strong relationships with branded channel partners; the
timing and market acceptance of new product introductions by
competitors; worldwide information technology spending levels;
unexpected shortages of critical components; rescheduling or
cancellation of customer orders; loss of a major customer; general
competition and price pressures in the marketplace; the company's
ability to control costs and expenses; and general economic
conditions. Reference is also made to other factors detailed from
time to time in the company's filings with the Securities and
Exchange Commission. These forward-looking statements speak only as
of the date of this release and the company undertakes no
obligation to publicly update any forward-looking statements to
reflect new information, events or circumstances after the date of
this release. Overland, Overland Storage, REO SERIES, REO, NEO
SERIES, NEO, ARCvault SERIES, ARCvault, ULTAMUS, and Snap Server
are trademarks of Overland Storage, Inc. DATASOURCE: Overland
Storage, Inc. CONTACT: Sue Hetzel of HetzelMeade Communications,
+1-760-434-9927, Web site: http://www.overlandstorage.com/
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