Raidtec bought by Plasmon
1 April 2005 | 0
Eighty per cent of the shareholders in Raidtec had undertaken to accept Plasmon’s offer to acquire the whole of the share capital of Raidtec for a consideration of approximately STG£1.5m (€2.24m) and to repay shareholders STG 1.9m (€2.84m) in loans given to the Irish company.
In a statement, the British company said that Irish law allowed it to compulsorily acquire the remaining stake in the company. Raidtec, which develops and manufactures SAN and NAS storage networking solutions based on FC, SCSI and SATA technologies, had been working in partnership with Plasmon over the last year to develop new UDO (Ultra Density Optical) libraries, specifically a “network attached UDO library with an integrated server and NAS operating system sourced from Raidtec”.
‘Over the last 15 months we have been engaged with Raidtec to build a next generation product that bundles their storage networking and RAID technologies with Plasmon libraries, said Plasmon chief executive, Nigel Street. ‘Acquiring Raidtec is the next logical step in our relationship and allows Plasmon to benefit directly from Raidtec’s 12 years of experience and core technology in NAS operating systems and controllers.’
‘Plasmon has already shipped some 200 NAS attached libraries and we plan to commence shipments of the new integrated UDO libraries to our major medical imaging customers in late 2004. We will also continue to sell Raidtec’s existing products that are complementary to our UDO solutions and this should be a profitable segment of Plasmon’s business by the year ending 31 March 2006’, said Street.Raidtec markets its solutions and components worldwide and in the year to 3 October 2003, Raidtec had sales of US$6.2m and made a loss of US$2.0m before exceptional costs of US$2.8m.
In a statement, Plasmon said the ownership transition will not affect current Raidtec customers and that Plasmon will continue to market and support existing Raidtec products and introduce new products currently under development. Raidtec products will continue to be sold worldwide through existing channels under the Raidtec brand. Noel May, founder of the company in 1991, remains chairman and chief executive.
The acquisition has been met with approval from analysts. ‘With the Raidtec acquisition, Plasmon acquires the capability to deliver a complete archival solution,’ said John McArthur, IDC Group vice president for Storage Hardware. ‘The proven NAS and RAID technology from Raidtec complements Plasmon’s core competency in optical and automation technology.’
Peter Gerr, an analyst at Enterprise Strategy Group, described the move as ‘savvy’. ‘This acquisition puts Plasmon in a better position to address more of an organisation’s information life cycle and archiving requirements while it expands its presence in high-growth market segments like Healthcare.’
Tom Keane, enterprise sales manager of CMS Peripherals, which distributes both Raidtec and Plasmon products (CMS is the sole Irish distributor for Plasmon), welcomed the acquisition. He said the deal would allow Plasmon to offer the complete range of data storage and back up systems. ‘They deliver a stronger message together than either could offer apart,’ he said.