Western Digital Buys VeloBit For Undisclosed Terms - Quick Facts

(RTTNews) - Western Digital Corp. (WDC) reported acquiring privately-held VeloBit, a provider of high-performance storage I/O optimization software, for undisclosed terms. VeloBit would be fully integrated into HGST, an unit of Western Digital. Headquartered in Lincoln, MA, VeloBit enhances storage system performance with its software technology by adding a transparent acceleration layer utilizing solid state drives or SSDs.

The acquisition builds on HGST's strategy to enhance the overall value of datacenter storage by integrating HGST SSDs with software. Both the VeloBit purchase and the proposed sTec acquisition by Western Digital reflect acceleration by its HGST division in the fast growing and strategic enterprise SSD space, augmenting its technology position and IP portfolio with additional engineering and design resources, according to Western Digital.

VeloBit has bagged multiple competitive product benchmarks in the areas of I/O acceleration and server density optimization, and VeloBit HyperCache was selected by Storage Magazine as a 2012 Storage Product of the Year.

VeloBit was founded in September 2010 by an experienced team of storage industry experts and entrepreneurs to commercialize inventions in caching and data compression. The company was funded by Fairhaven Capital and Longworth Venture Partners. Wells Fargo Securities, LLC has acted as the financial advisor to VeloBit in connection with this transaction.