Overland Storage has acquired fellow industry player Tandberg Data as it looks to grow revenues and extend its reach globally and take advantage of a manufacturing facility in China.
The stock deal worth $42m has been struck between Overland and Tandberg owner Cyrus Capital and should create a joint entity with annual revenues in excess of $100m as well as providing more coverage for the enterprise across Europe.
"With more than $100 million in annual revenue for the combined company during the last fiscal year, we expect the combination of these two businesses to provide us with a clearer path to profitability," said Eric Kelly, president and CEO of Overland Storage.
"The combined company will offer one of the broadest product lines and service offerings in the enterprise storage marketplace, and have the resources necessary to expand our market presence, fuel our growth and deliver innovative products and cloud offerings in the future," he added.
As well as providing more of a footprint in Europe for Overland the Tandberg deal also strengthens its position in Asia and the Middle East and should also boost R&D efforts with the expertise picked up in the acquisition.
Patrick Clarke, CEO of Tandberg Data, said that combining the resources would provide a platform for future growth: "Together we will be able to support our customers globally with over 16,000 channel and service partners."