Sanrad Acquired by OCZ for $15 Million in Stock

OCZ Technology Group, Inc. has acquired SANRAD Inc., a privately-held provider of flash caching and virtualization software and hardware.

"This transaction is an important step in OCZ’s enterprise solid state drive strategy," said Ryan Petersen, CEO of OCZ Technology Group. "It significantly enhances the ability for customers to increase datacenter performance and efficiency by putting more VM on a server without slowing down the VM’s ability to access stored data, thus substantially lowering the overall cost of deployment. SANRAD’s VXL has the ability to optimize caching strategies based on the application and support for VMware’s vMotion, which sets the solution apart from others in the industry, allowing enterprises to finally realize the benefit of running a single unified virtualized environment," concluded Mr. Petersen.

"SANRAD’s software is a wonderful complement to OCZ’s Flash technology," said Oded Ilan, CEO of SANRAD Inc. "We are excited with the opportunity created by this unique combination between storage virtualization, caching and PCIe Flash storage. We are proud to join the OCZ development team and to establish its design center in Israel."

SANRAD was founded in 2000 and its R&D center is based in Tel Aviv, Israel. SANRAD currently sells its line of flash caching and virtualization software and hardware to storage and networking OEMs such as Nexsan Corp. and Brocade Communications Systems, Inc. as well as directly to the enterprise through its network of VARs.

SANRAD transforms storage access in virtualized environments with NAND flash. Its technology allows data centers to fully leverage their flash-based storage investments, extending the lifespan of the storage infrastructure and maximizing efficiency. Virtualized data centers gain the benefits of NAND flash performance while retaining the benefits of server virtualization such as vMotion, high availability, and disaster recovery.

SANRAD’s virtualization software and solutions are VMware, Microsoft, and Citrix certified and are expected to accelerate the adoption of OCZ’s PCIe-based flash storage solutions in virtualized environments.

These solutions include:

• VXL software delivers SANRAD’s flash caching and virtualization technology for VMware vSphere, Microsoft Hyper-V and Citrix Xen into server virtualization platforms. VXL software enables dynamic distribution of host-based flash resources to guest virtual machines via its application optimized cache engine. The VXL SCSI connectivity enables support of most operating systems including all variants of Windows, FreeBSD, Solaris and Linux servers, in contrast to other caching solutions which require an installation of an agent or driver on each VM. VXL supports enterprise-class storage datacenter requirements such as QoS, high availability clustering, mirroring, WAN replication, snapshots and multiple storage virtualization functions. Unlike many other virtualization and caching algorithms, VXL guarantees complete cache migration via vMotion, as cached data is treated as a virtualized storage entity and can be dynamically migrated between ESX servers along with the virtual volumes without performance loss and without powering down the server, interrupting service of the VMs.
• StoragePro software provides remote storage management and virtualization services and ensures efficient use of storage resources for numerous connected servers. Its open, heterogeneous system architecture provides storage flexibility, enabling IT managers to manage a single virtual pool of storage which is critical in today’s enterprise environments.

The aggregate purchase price of the acquisition was $15 million comprised of approximately 2.1 million shares of OCZ common stock that was issued on closing.

Merriman Capital, Inc., a wholly-owned subsidiary of Merriman Holdings, Inc., served as OCZ’s exclusive financial advisor for the transaction.