Overland Storage Confirms Talks To Acquire Tandberg Data


Overland Storage and Tandberg Data could become a single company if the investment company with a stake in both companies has its way, a move solution providers said could be good for the channel.

Overland Storage, the San Diego-based developer of disk- and tape-based primary and secondary storage solutions, Tuesday officially confirmed reports that it has received a proposal from Cyrus Capital Partners, an investment firm that owns Tandberg Data, to combine the two companies. Cyprus Capital Partners reported a 19.99 percent stake in Overland Storage in February of this year.

Overland Storage said in a statement that it is evaluating the proposal.

 

[Related: Overland 'Snaps' Up Some NAS Business]

The statement comes after Overland Storage earlier this month said during its fiscal third-quarter 2013 financial report that it and Cyrus Capital Partners had been discussing a possible business combination between Overland Storage and Tandberg Data.

Overland Storage is no stranger to acquisitions. The company in 2008 acquired the Snap NAS line from Adaptec in a $3.6 million cash deal.

The company has since then continued to beef up the Snap NAS line with many of the features found in enterprise-class storage lines.

Eric Kelly, president and CEO of Overland Storage, said during his presentation for the quarterly financial report that the two companies have been in discussions. During the presentation, according to the transcript available from Seeking Alpha, Kelly said the transaction could create "a stable foundation for increased revenue and profitability, as well as accelerating our strategy of becoming a global leader in the end-to-end data management and data protection marketplace."

Under the Cyrus Capital Partners proposal, Overland Storage would acquire Tandberg Data on the basis of a "merger of equals," with shareholders from both companies owning 50 percent of the new company.

The resulting company would be a major provider of NAS, tape and RDX removable hard disk technology with a solid channel focus, Kelly said.

Pat Clarke, CEO of Tandberg Data, said an acquisition by Overland Storage would make sense.

"It would result in a stronger company and a stronger channel," he told CRN. "It would also help develop a complete product portfolio, especially for the SMB and SME [small and midsize enterprise] marketplace, and help cause our cash flow to grow.

NEXT: Overland, Tandberg Have Complementary Products, Channels