Another acquisition for OTGS:
dc.internet.com
OTG Acquires UniTree
By Roy Mark
Online data storage firm OTG Software, Inc. (NASDAQ:OTGS)
has acquired UniTree Software, Inc., a provider of UNIX and
Linux-based data storage and database storage management
solutions, for approximately $20 million. Under the terms of the
deal, OTG will pay $6 million in cash with the balance in common
stock and promissory notes. The acquisition is expected to be
neutral to combined financial statements in 2001, and "nominally"
accretive to the combined financial statements by the end of
2002.
Through the deal, OTG said it believes it has effectively doubled
its addressable market by penetrating the UNIX and Linux
storage sectors. According to Gartner/Dataquest, the market for
UNIX-based storage software is expected to grow to $8 billion
in 2005.
With the San Ramon, Calif.-based UniTree database technology, OTG also said it will be first-to-market with its transparent
database storage management solution for Oracle and IBM DB2 databases. This new solution segments and migrates data to
less expensive storage media while providing seamless access.
UniTree supports multiple hardware platforms including Sun, SGI, Compaq, Hewlett-Packard and Linux using a host of tape
and optical libraries from companies including StorageTek, ADIC, HP, Exabyte, Sony and others.
"UniTree has seven years of technology development in its UNIX-based storage software, which complements OTGs nine
years of product and channel success in the Windows environment," said Richard Kay, president and chief executive officer
(CEO) of the Rockville, Md.-based OTG Software. "With our recent acquisition of Smart Storage, we added UNIX storage
technology primarily for the departmentally focused CD/DVD market. With UniTree, we have significantly expanded our
UNIX/Linux market opportunities by adding high-end optical and tape storage solutions that scale to petabytes of data."
OTG has already integrated portions of UniTrees technology into its current DiskXtender UNIX Edition and Linux Edition
products. By acquiring this technology and bringing aboard UniTrees staff of approximately 20 people, OTG will utilize the
same integration approach that it has employed in its prior acquisitions of xVault and Smart Storage.
"Since 2000, we have been part of a successful relationship with OTG focused on their DiskXtender solutions for UNIX and
Linux," said Mark Saake, CEO of UniTree. "Now, by becoming part of OTG, we can more effectively bring our proven
database and file system products to the market, while concentrating on developing next-generation solutions for UNIX and
Linux data management."
OTG Software's products are used by over 15,000 organizations worldwide and are available through a network of over
450 VARs, distributors, and OEMs.
July 27, 2001 |
