By Tess Stynes
NetApp Inc. said it acquired the SteelStore product line from
Riverbed Technology Inc. $80 million, adding a product that allow
NetApp customers to extend backup and archive applications to the
cloud.
The deal will expand NetApp's portfolio and support its
customers' hybrid cloud initiatives by integrating cloud storage as
an option for backup and archiving business data, said Jonathan
Kissane, chief strategy officer and general manager of NetApp's
cloud business.
The deal comes as Riverbed has been under pressure from activist
investor Elliott Management Corp., which has been critical of the
company's operations and management and has been calling for
Riverbed to launch a sale process.
In a news release Monday, Riverbed Chairman and Chief Executive
Jerry M. Kennelly said the sale of the SteelStore reflects
Riverbed's commitment to focus on businesses and opportunities that
leverage its core competencies.
Riverbed recently projected fourth-quarter earnings that missed
analysts' expectations, but the company also reported that
third-quarter revenue rose 5.6%.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires