Call it a case of a minnow swallowing the whale! Fabrik, a San Mateo-based storage and software start-up backed by the likes of Intel Capital, is close to buying SimpleTech’s consumer storage device business and the brand name for an undisclosed amount of money.
While the company officials declined to comment, sources say that the deal is all but done and the announcement is going to come soon.
SimpleTech Inc. recently changed its name to STEC, and has decided to focus on its industrial memory business. STEC is divesting the consumer drive business, and according to a press release they have completed the sales of assets of its consumer division including the name “SimpleTech” for approximately $43 million and assumption of about $13.6 million in liabilities.
According to a guidance given by the company in December, the revenues for the fourth quarter 2006 were going to be between $105 million and $107 million. Consumer division accounts for about 40% of their sales. For the prior three quarters the company’s consumer division accounted for about $100 million in sales. In that sense, Fabrik could easily be looking at annual sales of $150 million in 2007.
So far, it has worked with partners like Maxtor to push its software; the SimpleTech deal, when it closes, will give Fabrik a dedicated outlet for its software, and can push its own branded devices to the market.
SimpleTech used to sell PininFarina-designed USB external storage drives, and that is another brand Fabrik could add to its portfolio of products. It has been one of the big sellers for SimpleTech.
2 trackbacks so far
4:53 PM PT
[...] first wave of new offerings coming from Mike and his innovative R&D team following the recent SimpleTech acquisition. The Fabrik team is building out a personal media web of software, services and devices that [...]
1:01 PM PT
[...] in 2006 teamed up with Fabrik and bundled MyFabrik service and software with its drives. Fabrik has since bought Simpletech, a drive and peripherals company. And last year, RCA teamed up with Box.net for its [...]
5 comments so far
7:44 AM PT
The SimpleTech acquisition has happened. I just went to check out Fabrik again and there is something really annoying about their website which is totally preventing me from using the service. I wanted to know how much the service would cost to move beyond the 1GB free account but I need to sign up with them to do that…stupid thing to make me do and for that reason I’m not going to be using them. Hello Carbonite, I’m signing up today!
10:56 PM PT
This is awesome. I have been using myfabrik service and really am so damn happy that now I can also use a Home Storage device that works with online service. This is awesome. These guys know what a consumer wants, and are listening. Great move fabrik guys.
10:57 PM PT
myfabrik rocks. Very cool product. PinnaFarina rocks. Great ID. Seagate guys should buy them.
10:59 PM PT
I agree. I am a Simpletech user. The ID is great. And the device is very simple to use. I used to have Western Digital Drive, it crapped out twice on me. I am using the PinnaFerina Portable drive from Simpletech for a year now, and very happy. Will now try out fabrik.
9:05 PM PT
Nice job Fabrik marketing. I like how the last three ridiculously positive comments happened to come 3 minutes apart.
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