By Zachary Shess
Storage integrators StorNet Inc. and Vangard Technology have agreed to merge their respective businesses. While terms of the agreement were not disclosed, the companies combined for more than $160 million in 1999 revenues.
According to Michael Phelan, StorNet president and CEO, although both companies have maintained an overall focus in backup/restore and data archiving, they do not have significant overlap. The combined company will benefit from leveraging complimentary strengths and regional presence. In California, for example, Phelan points out that StorNet has offices in Sacramento, San Francisco, and San Jose, while Vangard maintains a larger presence in Southern California.
The merger is also expected to create a broader customer base, enhanced engineering resources, and a greater variety of products and services, says Phelan, who will remain as chairman. Calvin Andre, president and CEO at Vangard, has become president and CEO of the new company. The merged companies will remain privately held and retain the StorNet name.
The combined company will maintain operations at StorNet's original headquarters in West Chester, PA, and Vangard's headquarters in Englewood, CO, with approximately 200 employees and 24 field offices. No layoffs are planned.