Boston, MA 05\/16\/2014 (wallstreetpr) \u2013 What started as a partnership between Overland Storage Inc (NASDAQ:OVRL)<\/b> and Sphere 3D is set to culminate in a merger deal. The companies agreed to join forces to form a single company that combines their abilities with the potential of gaining a bigger market share and making more profits.<\/p>\n
According to the agreement, Overland will receive $81 million to merge into Sphere 3D of which it will lose its identity because the combined company will be known as Sphere 3D. However, the products of Overland will remain alive even after the name-change.<\/p>\n
The two companies joined forces in a partnership to develop a storage platform that supports application virtualization. The partnership saw Overland Storage Inc (NASDAQ:OVRL) CEO Erick Kelly become the chairman of Sphere 3D, that was last September. The partnership of the two vendors has achieved many remarkable benefits that they believe a merger would be the best option if greater gains are to be realized into the future.<\/p>\n
Acquisitions<\/b><\/p>\n
The merger deal comes a time when the companies recently moved to make acquisitions towards enriching their respective portfolios. Overland added Tandberg Data, a vendor of removable disk cartridge, to its portfolio in January. The companies have not yet completed their tie-up as two steps in the agreement are still pending. However, Overland said its planned merger with Sphere 3D will not affect its acquisition of Tandberg Data. It expects the second step of the agreement to wrap up June and the third step to close by the end of the year.<\/p>\n
According to Overland CFO Kurt Kalbfleisch, the acquisition of Tandberg will see the company reduce its operating expenses by about $45 million by the end of this year. The remaining two steps in the acquisition of Tandberg involve integration of the internal operations and supply chains.<\/p>\n
Making acquisitions has not been just a preserve of Overland Storage Inc (NASDAQ:OVRL) as its partner Sphere 3D has also had its fair share of acquisition deals. The company in March acquired V3 Systems, a virtual desktop software startup.<\/p>\n
Management structure lacking<\/b><\/p>\n
Although Overland Storage Inc (NASDAQ:OVRL) looks forward to merging into Sphere 3D, the two companies have not issued details about the management structure that will feature in the combined company. However, it is rumored that Peter Tassiopoulos, the CEO of Sphere 3D, may become the CEO of the combined company while Mr. Kelly becomes the chairman.<\/p>\n
Overland Storage Inc (NASDAQ:OVRL) continued its loss-making practice into 3Q2014 where the company lost $6.6 million.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/16\/2014 (wallstreetpr) \u2013 What started as a partnership between Overland Storage Inc (NASDAQ:OVRL) and Sphere 3D is set to culminate in a merger […]<\/p>\n","protected":false},"author":10,"featured_media":22556,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236,263],"tags":[2653,2652],"stock_ticker":[],"class_list":["post-22552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-technology","tag-nasdaqovrl","tag-overland-storage-inc-nasdaqovrl","entry"],"acf":[],"yoast_head":"\n