Tape library vendor Overland Storage has acquired privately-held Okapi Software to expand into the new iSCSI and Serial ATA (SATA) disk technologies.
The acquisition price of $5.0 million consists of $2.5 million in Overland stock, $1.8 million in cash, and Overland’s assumption of approximately $700,000 in liabilities.
Okapi founder, president, and CEO John Matze has been appointed vice president and chief technology officer of Overland. Matze has more than 14 years experience in the storage sector, including positions at VERITAS Software and Stac. He is also one of the original architects of the IETF standard for the new iSCSI technology.
“IT managers need a solution to help them reduce their backup window, speed restores, complement tape backup strategies, and fit within existing infrastructures,” says Christopher Calisi, president and CEO of Overland. “We believe the Okapi backup accelerator appliance is the ideal solution.”
Okapi uses iSCSI and Serial ATA drives to produce an appliance that facilitates Disk-to-Disk-to-Tape (D2D2T) backup, accelerating backup by up to eight times. After servers have been freed up for normal operation, data is streamed to tape at block storage transfer rates to facilitate offsite storage and archive. The solution provides Fibre Channel performance without Fibre Channel cost and complexity, claims Calisi.
Overland will formally introduce the product under the Overland label in August.
Calisi says the acquisition will result in earnings dilution of approximately 11 cents per share during fiscal 2004, 7 cents of which is amortization of the Okapi purchase price, but will become accretive in fiscal 2005.
“We believe this investment will allow Overland to take a leading position in the emerging disk-based appliance market,” states Calisi, adding that Matze “will contribute his significant knowledge and experience to develop a powerful roadmap of next-generation products.”
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