Overland Storage and Sphere 3D completed their merger Tuesday, and while the combined company will be called Sphere 3D, it looks a lot more like the old Overland Storage.
Officially, Overland becomes a wholly owned subsidiary of Sphere 3D after Sphere 3D paid $81 million for Overland stock. The Overland, Tandberg Data (acquired by Overland last January), Sphere 3D and V3 Systems (acquired by Sphere 3D last January) brands remain.
Overland CEO Erik Kelly will run the new company as CEO and chairman (a position he held at Sphere 3D before the merger). Former Sphere 3D CEO Peter Tassiopoulos ranks below Kelly as vice chairman and president. Overland CFO Kurt Kalbfleisch will take that same job with Sphere 3D. The new Sphere 3D board includes former Overland directors Vic Mahadevan and Dan Bordessa, and Sphere 3D holdovers Peter Ashkin, Mario Biasini, and Glenn Bowman along with Kelly and Tassiopoulos.
Most of the products and revenue will also come from Overland because Sphere 3D didn’t have much of either before the merger. Sphere 3D reported third-quarter earnings Monday, claiming $1.6 million in revenue and $3.75 million in losses.
Overland last month reported $22.9 million in revenue for its most recent quarter, and lost $7.3 million. The new company’s goal is to turn Overland’s disk and tape storage products and Sphere 3D’s Glassware virtualization products into one profitable business instead of two money-losing companies. That will be a tough trick.