SANTA CLARA, Calif. – Netgear Inc. has signed a definitive agreement to acquire privately-held Infrant Technologies, Inc. for US$60 million, plus $20 million more if revenue targets are met.
Founded in March 2001 and based in Fremont, Calif., Infrant makes what it calls affordable enterprise-level storage for small businesses and professional home users.
Its ReadyNAS family of network attached storage (NAS) products implements redundant array of independent disks (RAID) data protection, enabling users to store and protect critical data easily. The ReadyNAS lineup is powered by Infrant’s proprietary network storage processor, Linux-based RAIDiator operating system and patent-pending Expandable Protection (X-RAID) technology, which allows for automatic RAID volume expansion as additional drives are added.
Under the terms of the agreement, Netgear will pay $60 million in cash for Infrant. Infrant shareholders may receive a total additional payout of up to $20 million in cash over the three years following closure of the acquisition if specific revenue targets are reached. The acquisition is subject to various standard closing conditions and is expected to close in the second quarter. Following completion of the transaction, Infrant president and chief executive officer Paul Tien will become Netgear’s vice-president and general manager for storage products.
“This acquisition fits Netgear’s strategy of expanding its product portfolio, strengthening its global brand presence and adding on proven management talent to further grow our business,” said Patrick Lo, chairman and CEO of Netgear.
“Infrant’s offerings complement Netgear’s current Storage Central offering, which is based on Zetera Corp.’s micro SAN (Storage Area Network) technology, and accelerates Netgear’s participation in the expanding market for networked attached storage.” The ReadyNAS portfolio also complements Netgear’s digital home entertainment products, he said.
Netgear will acquiring Infrant’s 34 full-time employees, including 21 engineering professionals, its pending patents, proprietary technologies, current products and products in development.
