Adaptec Sells Snap Server NAS Business to Overland Storage

Tag : Computer Hardware And Software

A global leader in storage solutions, today announced that it hassold its Snap Server NAS business, including the brand and allassets related to Snap Server networked and desktop storageappliances, to Overland Storage Inc. OVRL for a net consideration of $3.6 million. Under the terms of theagreement, Adaptec will retain ownership of all iSCSI-basedhardware and software products and assets, which will be rebrandedand managed by Adaptec.

"The sale of the Snap Server business allows us to focus onstrengthening our leadership position in the Unified Serial RAIDcontroller business, leverage our iSCSI assets and continue tostreamline the company's operations," said S. "Sundi" Sundaresh,president and chief executive officer, Adaptec Inc.
 
"With the acquisition of the Snap Server storage appliances,Overland is well positioned to extend our end-to-end dataprotection offerings while also meeting our customers' andpartners' growing needs for best-of-class, distributed NASappliances," said Vern LoForti, president and chief executiveofficer, Overland Storage. "The award-winning Snap Server familycomplements our existing robust portfolio of disk-, tape- andSAN-based products to reinforce Overland's strength as a globalleader in the growing data protection market. At the same time weare thrilled at the creative talent pool that will be joining ourexisting team in strengthening a truly world class organization."

Overland Storage will take over control of all existing Snap Servernetworked and desktop storage appliance assets including licenses,patents, existing product inventory and fixed assets and assumecustomer support obligations. Approximately 50 Adaptec employeeswill receive offers to join Overland Storage effective June 30,2008. These employees will remain in the same facility in Milpitas,California which Overland is subleasing from Adaptec.

Today, Adaptec offers a comprehensive family of products built uponits Unified Serial(TM) Architecture that allows VARs, OEMs and ITorganizations to create flexible storage solutions withcost-effective, high-capacity Serial ATA (SATA) disk drives, orhigh-performance Serial Attached SCSI (SAS) drives, or both, in asingle storage system. In addition, Adaptec will continue to focuson iSCSI market opportunities, and the development of newtechnologies for integrating high-value, competitive advantagesinto its RAID controller and HBA products lines. It is also workingto expand its global sales channels and strategic partnershipswithin the data storage ecosystem to increase its visibility instrategic markets.

Additional information will be provided in a Form 8-K that will befiled with the Securities and Exchange Commission in connectionwith these agreements, as well as during Adaptec's Q1 quarter 2009conference call.