Feeds

Quest gets some Bakbone for $55m

Upright data protection

Gartner critical capabilities for enterprise endpoint backup

Channel push

When announcing these results, Martin said: "Our first quarter bookings reflect strong demand from Asia, especially Japan, offset by reduced bookings in Europe and North America as compared to the prior year. Japan was especially strong for BakBone. During the recent quarter, we received a commitment for approximately $2 million from a large financial services company in Japan. Approximately 25 per cent of the order is included in our bookings for the first fiscal quarter with the remaining amounts expected over future quarters including the next fiscal year.

"We continue to move aggressively toward an enhanced channel-centric sales model in our North American operations, similar to the one we use for our successful sales efforts in Japan. We are working closely with our resellers and distributors to drive additional sales of our NetVault storage offerings in the marketplace. … For the remainder of fiscal 2011, we will be focused on strengthening our channel-centric sales model and on expanding our presence in the growing markets of the Asia-Pacific region, while maintaining good control of operating expenses. We remain committed to increasing revenues and improving profitability."

This picture was all too clear to investors. They were looking at a share price of $0.45 in January this year and 0.16 on Monday November 8th, following a low point of $0.12 in September. Now, with the acquisition news out there, the shares are $0.315. Recent buyers will be well pleased.

VantagePoint Venture Partners, a venture capital company, owns a chunk of BakBone's Series A Preferred Shares and has two directors on Bakbone's board. These two may have been driving events, especially as preferred shareholders get $1.29 a share instead of the $0.33 the common shareholders get in the acquisition.

Contracting but a working company in there

Bakbone has been contracting its business, backtracking from messaging and finding its OEM business shrinking. It does not have must-have, leading technology in any data protection area. What it does have are 130-plus loyal employees and many, many customers around the globe.

Vanessa Gamlin, its world-wide director of field marketing, said immediately before news of the acquisition broke: "BakBone’s financial position remains strong and we are generating positive cash flows. We are working on new technologies and developing new products and have a solid customer base worldwide." That's what made it a good purchase for Quest Software.

Doug Garn, CEO and president of Quest Software, said: "Our respective products are highly complementary, with minimal overlap. The value received from BakBone's employees, technologies, partners and customers is expected to be a key benefit as we seek to expand our market share in the data protection market by building upon our core portfolio."

Martin said: "We are pleased that we have been able to enter into this definitive agreement on behalf of BakBone's shareholders." You bet; those shareholders owe Martin a great debt of thanks. It doesn't look too much like a distress sale but it must have been pretty close.

The deal is expected to close in the first quarter of 2011. Hopefully the majority of jobs at Bakbone will be safe, although there have to be the traditional back-office area rationalisations and maybe some sales overlaps to sort out. The engineers should have fun converging the two base technologies. One job casualty might be Martin himself; two CEOs being one too many. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.