EMC acquires Captiva
EMC Corp. announced it will acquire Captiva Software Corp, which makes management software that converts paper-based documents to digital formats. EMC will pay $22.25 per share in cash, or approximately $275 million.
EMC said the deal would extend its Documentum enterprise content management platform. Captiva focuses on the early stages of EMC's current favorite, information lifecycle management -- information capture, digitization and categorization. EMC aims to use Captiva's software to get users to either eliminate paper or automate its digital capture and integrate the information with electronic business processing.
According to market analyst Robert W. Baird research, the expansion into an adjacent market may be a good one for EMC, but only if it plays its cards right.
"Captiva augments EMC's enterprise content management capabilities," said Baird's official report on the deal."[However], as 40% of revenues are indirect, we believe EMC must carefully manage Captiva's channel relationships. Although there are clear product synergies on the content management side, we believe a typical Captiva purchaser is slightly different than a traditional EMC customer."
The transaction is subject to regulatory and Captiva stockholder approval, and is expected to be completed in either late 2005 or early 2006. Upon completion of the acquisition, EMC expects to take a charge of approximately $15 million to $20 million for the value of Captiva's in-process research and development costs.
NetApp hires former Engenio CEO
Network Appliance (NetApp) has hired Tom Georgens, formerly CEO of LSI Logic subsidiary Engenio Technologies. According to a Securities and Exchange Commission filing Oct. 20, Georgens was named as Network Appliance's executive vice president and general manager of enterprise storage systems. The filing states that his annual salary will be $375,000 and on top of shares in the company he will receive a $500,000 sign-on bonus to be paid monthly in five equal installments, and in the event his employment with the company is mutually terminated, a $250,000 relocation stipend, which shall be in effect for the first two years of his employment with NetApp.
EMC replaces chairman
EMC announced that Joe Tucci will become chairman of the board of directors, effective January 1, 2006. Tucci will continue to serve as president and CEO of EMC, a role he has held since January 2001. Mike Ruettgers, who has been EMC's chairman since January 2001, and has served as an EMC director since 1992, has resigned from the board of directors effective Dec. 31, 2005. He will continue as a senior advisor to the EMC board and management.
Separately, EMC announced the availability of the new Connectrix ED-48000B Fibre Channel enterprise director and the Connectrix DS- 220B Fibre Channel SAN switch, based on Brocade SilkWorm 48000 director and SilkWorm 200E.
IBM increases support for VMware
IBM will announce a deal with VMware to create the IBM Virtualized Hosted Client, which will use IBM's BladeCenter to create between 12 and 14 virtual desktops per blade, allowing users to run multiple desktops with multiple operating systems.
Revinetix adds NAS
Revinetix announced that its Sentio and Volo backup and recovery appliances will soon be upgraded with onboard NAS support. The NAS upgrade is planned for release within 60 days and will be included with all Sentio and Volo products as part of Revinetix' RevOS software.
Luchs appointed by SNIA
The Storage Networking Industry Association (SNIA) today announced Ralph Luchs has joined the association as the new education director. Luchs joins SNIA from Hewlett-Packard, where he was the training manager.
LiveVault announced that the company is launching its "Data Protected by LiveVault" program. Participating organizations qualify for prearranged discounts on the LiveVault InSync service.