OTGS to acquire Smart Storage:
dc.internet.com
OTG Acquires Smart Storage
By Roy Mark
Online data storage firm OTG Software (NASDAQ:OTGS) is acquiring Smart Storage in a stock-for-stock transaction of approximately 3.55 million OTG common shares. Smart Storage provides standards-based DVD and CD storage management software.
The Bethesda, Md.-based OTG anticipates the deal will close by the end of March and that the acquisition will be nominally accretive to the combined financial statements by the end of this year.
The acquisition adds technology that allows OTG to offer its application-centric storage solutions for all CD/DVD media in addition to other storage devices and positions the company to attack fast growing new market segments such as rich media that are CD/DVD based. In addition, Smart Storage bolsters OTG's European and Asian penetration.
"Businesses today demand software solutions that not only help reduce the cost of storage management, but also enable direct access to end users' most valuable asset -- their data", said Richard Kay, chairman and chief executive officer (CEO) of OTG Software. "With the acquisition of Smart Storage, we believe OTG will be able to enhance its open, distributed and scalable storage solutions."
With the acquisition of Smart Storage, OTG is continuing its strategy to capitalize on the growth in data storage and access needs, and the multi-billion dollar opportunities in the storage and messaging markets.
According to a recent U.C. Berkeley study, the amount of information being generated is expected to double annually, with more original information being created in the next two years than in the "entire history of mankind."
"We are very excited about combining the strengths of the Smart Storage and the OTG teams. Smart Storage's standards based technology, proven commitment to NT and UNIX platforms, and strong international presence naturally fit with OTG. Additionally, we share OTG's vision of satisfying the universal demand for information access for any kind of content with any kind of storage device in today's heterogeneous data network and platform environments," states Kirit Patel, CEO of the Andover, Mass.-based Smart Storage.
OTG maintains a Web site at otg.com while Smart Storage can be found at smartstorage.com. |
