Western Digital Buys VeloBit
Irvine, Calif.-based Western Digital has a new subsidiary.
On Wednesday, Western Digital announced that it has acquired privately held I/O optimization software maker VeloBit for an undisclosed sum. Western Digital intends to incorporate its new holding into its HGST subsidiary.
In a press release, Western Digital said Lincoln, Mass.-based "VeloBit enhances storage system performance with its software technology by adding a transparent acceleration layer utilizing solid state drives (SSDs) ... dramatically accelerat[ing] applications and increase[ing] server density." The company characterized the acquisition as helping to expand its presence in the enterprise (i.e. corporate, as opposed to consumer) solid-state disk storage market.
Solid-state drives store data on microchips rather than the magnetic platters that power conventional hard drives. They are generally considered faster and more reliable, though at a higher price. The company said the deal builds on its plans to buy data storage device maker sTec Inc. for about $320.7 million in cash.
Investors appear to be responding positively to today's announcement, bidding up Western Digital shares by 0.3% on a rather flat day for the market.
-- Material from The Associated Press was used in this report.
The article Western Digital Buys VeloBit originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Western Digital.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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