May 29, 2013 – Data management and protection vendor Overland Storage is mulling a buyout that would involve a merger with tape storage specialist Tandberg Data.
Cyrus Capital Partners, the owner of Tandberg Data Holdings and its storage division after a restructuring to take that company private in 2009, has made a proposal to buy Overland for the “potential business combination.” Financial details were not released in the deal, which Overland confirmed late Tuesday. Overland has retained Roth Capital Partners to evaluate the proposal.
In mid-May, Overland reported another quarter of decreasing returns, with a dip of $1 million in net revenue to $11.6 million. However, executives were “encouraged” by the continued growth in disk-based products sold under its SnapSAN, SnapServer and SnapScale brands.
San Diego-based Overland counts 300,000 data management installations worldwide, though took a hit in 2006 with the loss of its biggest customer, HP. Its board of directors includes executives with backgrounds at HP, Cisco and NetApp.
Tandberg’s data division acquired Exabyte in 2003 and, in 2011, purchased the removable disk storage entity RDX from ProStor Systems.
Hardware and storage vendors represent the nadir in an overall low mergers and acquisitions market over the last six months, as even information management industry giants like IBM and Oracle reporting declining hardware results.
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