NetApp Acquires SteelStore Line From Riverbed for $80 Million

   By Tess Stynes 
 

NetApp Inc. said it acquired the SteelStore product line from Riverbed Technology Inc. $80 million, adding a product that allow NetApp customers to extend backup and archive applications to the cloud.

The deal will expand NetApp's portfolio and support its customers' hybrid cloud initiatives by integrating cloud storage as an option for backup and archiving business data, said Jonathan Kissane, chief strategy officer and general manager of NetApp's cloud business.

The deal comes as Riverbed has been under pressure from activist investor Elliott Management Corp., which has been critical of the company's operations and management and has been calling for Riverbed to launch a sale process.

In a news release Monday, Riverbed Chairman and Chief Executive Jerry M. Kennelly said the sale of the SteelStore reflects Riverbed's commitment to focus on businesses and opportunities that leverage its core competencies.

Riverbed recently projected fourth-quarter earnings that missed analysts' expectations, but the company also reported that third-quarter revenue rose 5.6%.

Write to Tess Stynes at [e-mail]

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