LightSand Raises Cash, Buys SANcastle
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In transactions that it says will allow it to provide the "industry's broadest range of SAN connectivity products," LightSand, a developer of high-end SAN gateway products, announced today that it has wrapped up a new round of funding and also acquired SANcastle Technologies Inc., a manufacturer of Fibre Channel over IP (FCIP) gateways and inter-fabric switch (AR/DAT) technology.
"LightSand has exceeded its sales goals every quarter since we began shipping products last year," said LightSand CEO Philip Black. "Our successes in the market have enabled us to raise this round, which should take us to positive cash flow."
Investors in this $7 million round include Baring Equity Partners Asia, Concord Venture Partners, Fremont Ventures and Genesis Partners Group. The boards of directors of LightSand and SANcastle have approved the acquisition, which, after obtaining shareholder approval from each company and satisfying other closing conditions, is expected to close in August 2003. Terms of acquisition were not disclosed.
The combined company will offer a broad array of SAN connectivity products, said Gregg Pugmire, LightSand vice presdent of business development. "LightSand's SAN extension gateways provide high performance data movement over SONET/SDH [Synchronous Optical Network/Synchronous Digital Hierarchy], DWDM [Dense Wavelength Division Multiplexing] and dedicated fiber optic networks. SANcastle's product line is the perfect complement to this family."
SANcastle's inter-fabric switch technology (i-Switch) is designed to solve a major industry issue, SAN scalability, by using the AR/DAT (autonomous region/domain address translation) proposed industry standard, according to Peter Dixon, SANcastle's executive vice presient sales and marketing. Dixon also said that the i-Switch also allows for the creation of multi-vendor SAN fabrics and provides SAN-to-SAN isolation. "For the first time, as multiple SAN fabrics are brought together, changes made to one SAN fabric do not disrupt the operation of the others."
According to a statement released by the companies, SANcastle products and employees will be moved to LightSand's headquarters in Milpitas, Calif. The company will retain the LightSand name and be headed by Philip Black, LightSand's current CEO.
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