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Double-Take to be acquired by Vision Solutions

Double-Take Software’s executives and directors have agreed to be acquired by Vision Solutions in a deal valued at $242 million, pending approval of the company’s shareholders. Vision Solutions is a portfolio company of Thoma Bravo, LLC, a private equity firm.

Last month Double-Take disclosed it had received indications of acquisition interest during, but did not name any suitors. After issuing a press release saying “The Double-Take board of directors unanimously approved the agreement and has recommended the approval of the transaction to Double-Take’s stockholders,” Double-Take officials declilned further comment today.

Vison Solutions specializes in disaster recovery and HA software for IBM System i and AIX servers. Vision Solutions previously had an OEM agreement to rebrand Double-Take’s software when it needed to support x86 Windows or Linux servers. That relationship was subsequently changed to a reseller agreement that remains ongoing.

Industry observers see this deal as an exit strategy for Double-Take’s board, after the first calendar quarter of 2010 finished “weaker than expected” for Double-Take. Said one source familiar with the company and the deal, speaking on condition of anonymity: “Double-Take’s magic sauce was that it could make your Exchange on a server in, say, Chicago run just like it would in Boston. But VMware came along and said, ‘Stick it in a VM, it’s the same thing, and you don’t have to install agents or worry about third-party software.’

“The folks at Double-Take saw it coming, but they couldn’t jump out of the way of that train fast enough.”

It wasn’t just VMware that began eating away at Double-Take’s market, but other backup and DR tools began to crop up and undercut Double-Take’s offerings in price, our source said.

With the deal not expected to close until after July, it’s officially “business as usual” for Double-Take customers. After the deal closes, Vision Solutions is expected to continue supporting Double-Take’s existing customers. “You have $90 million cash on hand and $40 million a year in software maintenance business — Thoma Bravo has every reason to keep existing customers happy,” said the insider.

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