Western Digital Acquires Velobit; HGST to Integrate I/O Optimization Software Into Its Solid State Drive Portfolio
SAN JOSE, Calif. and LINCOLN, Mass., July 10, 2013 – Western Digital® Corporation (NASDAQ: WDC) has acquired privately held VeloBit, a provider of high-performance storage I/O optimization software. VeloBit will be fully integrated into HGST, a wholly owned subsidiary of Western Digital. Headquartered in Lincoln, MA, VeloBit enhances storage system performance with its software technology by adding a transparent acceleration layer utilizing solid state drives (SSDs). Financial terms of the transaction were not disclosed.
The acquisition builds on HGST's strategy to enhance the overall value of datacenter storage by integrating HGST SSDs with software. VeloBit's SSD caching software dramatically accelerates applications and increases server density by enabling higher I/O performance, lower latency, and more efficient usage of processor and storage resources.
Both the VeloBit acquisition and the proposed sTec acquisition by Western Digital reflect acceleration by its HGST subsidiary in the fast growing and strategic enterprise SSD space, augmenting its technology position and IP portfolio with additional engineering and design resources.
"In VeloBit we saw a great team that has developed and commercialized breakthrough I/O optimization software," said Mike Cordano, president, HGST. "The acquisition of VeloBit is an important step in our strategy to develop robust software capabilities to augment our successful SSD product portfolio."
"We are convinced that the best way to meet our customers' needs is to tightly integrate storage optimization software with the hardware," said Duncan McCallum, co-founder and CEO of VeloBit. "In HGST we have found the ideal partner to continue to develop our ground-breaking caching, compression, and cache coherence technology. This acquisition will enable us to continue to expand the range of products and services we offer to our customers."
VeloBit has won multiple competitive product benchmarks in the areas of I/O acceleration and server density optimization. VeloBit HyperCache was chosen by Storage Magazine as a 2012 Storage Product of the Year.
VeloBit was founded in September 2010 by an experienced team of storage industry experts and entrepreneurs to commercialize inventions in caching and data compression. The company was funded by Fairhaven Capital and Longworth Venture Partners.
Wells Fargo Securities, LLC has acted as the financial advisor to VeloBit in connection with this transaction.
For more information about VeloBit, a fact sheet is available on the Western Digital website at www.wdc.com or click here.
About Western Digital
Western Digital Corporation (NASDAQ: WDC), Irvine, Calif., is a global provider of products and services that empower people to create, manage, experience and preserve digital content. Its subsidiaries design and manufacture storage devices, networking equipment and home entertainment products under the WD®, HGST and G-Technology brands. Visit the Investor section of the company's website (www.westerndigital.com) to access a variety of financial and investor information.
HGST (formerly known as Hitachi Global Storage Technologies or Hitachi GST), a Western Digital company (NASDAQ: WDC), develops advanced hard disk drives, enterprise-class solid state drives, innovative external storage solutions and services used to store, preserve and manage the world's most valued data. Founded by the pioneers of hard drives, HGST provides high-value storage for a broad range of market segments, including Enterprise, Desktop, Mobile Computing, Consumer Electronics and Personal Storage. HGST was established in 2003 and maintains its U.S. headquarters in San Jose, California. For more information, please visit the company's website at http://www.hgst.com.
VeloBit provides high-performance storage I/O optimization software that dramatically boosts VDI and server density, accelerates applications, and boosts database capacity at a remarkably low cost. VeloBit uses Solid State Disk (SSD) to create a transparent application acceleration layer that boosts performance and capacity by up to 20x. The software installs seamlessly in 60 seconds and automatically tunes for fastest application speed. VeloBit deploys and operates transparently to existing applications, storage, or data management.
This press release contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward‐looking statements include statements concerning the anticipated benefits of the VeloBit acquisition and management's anticipated plans and strategies for the VeloBit business. These forward‐looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward‐looking statements, including the possibility that the expected benefits of the acquisition may not materialize as expected; failure to successfully integrate VeloBit's products, capabilities and employees with HGST; and other risks and uncertainties listed in Western Digital Corporation's filings with the Securities and Exchange Commission (the "SEC"), including Western Digital Corporation's recent Form 10‐Q filed with the SEC on May 3, 2013, to which your attention is directed. Readers are cautioned not to place undue reliance on these forward‐looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update these forward‐looking statements to reflect subsequent events or circumstances.