Overland Snaps Up Snap
Overland (NASDAQ: OVRL) is acquiring the Snap Server NAS product line from Adaptec (NASDAQ: ADPT) for $3.6 million.
With 200,000 units shipped and $18 million in annual revenues, the deal looks like a good one for Overland if it can execute in a crowded market.
"If Overland can reinvigorate the product development and marketing of Snap and the solutions to their former glory, then Overland got a good deal," said Greg Schulz, senior analyst and founder of StorageIO.
"However, given the stiff competition from the likes of Iomega/EMC, NetApp/StorVault, HP, Dell, Buffalo, Cisco/Linksys and all of the other Microsoft WSS-based low-end NAS, Overland has their work cut out for them," Schulz added.
The deal adds a NAS product lineup to Overland's ULTAMUS RAID SAN storage, REO disk-based backup VTL, and NEO and ARCvault tape automation products. Overland said the deal will help it meet its goal of offering end-to-end data protection solutions.
Overland CEO Vern LoForti said in a statement that the company plans to expand Snap's reach to markets such as video surveillance and video archiving. Overland hopes to make the Snap business cash-flow positive by mid-2009.
Overland also acquired the Snap Server GuardianOS operating system, and the Milpitas, Calif.-based Snap Server team of about 50 people will be joining Overland, including sales, marketing, engineering and support.
Adaptec said it will retain ownership of all iSCSI-based hardware and software products and assets, which will be rebranded and managed by Adaptec.
For Adaptec, the deal is an opportunity 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," CEO S. "Sundi" Sundaresh said in a statement.
Overland shares were up 11 percent to $1.20 in afternoon trading, while Adaptec shares were off 1.5 percent to $3.23.