EMC to acquire Avamar Technologies for US$165m

Stan Beer
Thursday, 02 November 2006 16:02

IT Industry - Strategy

Information management and storage market leader EMC Corporation is to acquire privately-held Avamar Technologies a provider of enterprise-class data protection software featuring idata de-duplication technology. EMC will acquire the Irvine, California-based company in a cash transaction valued at approximately US$165 million.

The acquisition is expected to be completed within 30 days and is not expected to have a material impact on EMC’s revenue or EPS for 2006.

Avamar’s software utilizes patented data de-duplication technology to backup data once – and only once – on a global basis. Avamar identifies redundant data segments at the source, thereby reducing the amount of network bandwidth used and data stored.

Mark Sorenson, EMC Senior Vice President, Information Management Software, said, “The overwhelming value proposition of backup-to-disk is getting stronger by the day. Most recently, the limitations of tape-based backup have inspired the creation of new technology such as data de-duplication to significantly alter the cost and efficiency equation for disk-based backup. Avamar is acknowledged as the industry’s best at helping customers transcend the shortcomings of traditional tape-based methods, thereby accelerating the ongoing shift to disk as the de facto backup and recovery medium.”

“From the very beginning, we’ve had a clear vision of completely transforming how customers backup and protect their information,” said Ed Walsh, CEO of Avamar. “Avamar was first to market with global data de-duplication technology. As a result, our market traction has been exceptional with customers around the globe. Joining EMC will allow us to take our vision to the next level and accelerate adoption of this disruptive technology.”

Upon completion of the deal, Avamar will be integrated into EMC’s Storage Product Operations (SPO) group. Avamar CEO Ed Walsh will report directly to Mark Sorenson.