According to an SEC filing today ADIC is offering to take over Overland Storage, the struggling supplier of NEO disk libraries and REO disk-to-disk backup systems.
This would be a substantial consolidation in the automated tape market and provide concerns for existing Overland Storage customers over what would happen to the support and development of their products.
Techworld has covered this developing story in the past (see also here). ADIC has its own range of tape libraries and PathLight disk-to-disk backup products. The clear implication, if the takeover succeeds, is that Overland's products would have an end-of-life process ahead of them. Their users would be encouraged to move to the appropriate ADIC product. It would probably also mean an end to Overland's move into primary storage.
ADIC CEO Peter van Oppen wants a friendly dialogue with Overland's CEO, Chris Calisi. The takeover offer, delivered today, was also sent to Overland's board chairman, to make the point that ADIC could deliver better shareholder value to Overland's shareholders than its existing Calisi-led management team.
Overland's management has publicly said it does not want the company to be taken over. ADIC's offer letter expresses a hope for friendly dialogue.
The takeover rumours started when ADIC bought up to 10 percent of Overland's shares following HP's decision not to take a future tape automation product from the company. HP is a very large OEM for Overland's products and this news was not good for the company. Overland then took over a disk virtualisation company, Zetta, and announced a move into primary data storage.
Ironically, and also today, Overland has announced a new OEM deal, one for its REO disk-to-disk backup product. The OEM has not been identified, and is targeting REO as a virtual tape product for small and medium enterprises.