Storage vendor FalconStor Software Inc. and infrastructure maker Network Peripherals Inc. this week announced at NetWorld+Interop that they will merge to create a publicly traded company called FalconStor Software. In the stock swap, two-thirds of the shares will accrue to FalconStor; one-third to Network Peripherals.
The merger is expected to complete in the third quarter of 2001. NPI didn't reveal how much it is paying for the start-up.
FalconStor, which deals in storage virtualization software, was founded by ReiJane Huai, the founder of Cheyenne Software. Cheyenne Software provided server-based backup tools for NetWare and Windows NT. It was acquired by Computer Associates International Inc. in 1996 for US$1.3 billion.
FalconStor's IPStor product logically congregates all the disks on a network and adds them to a virtual storage pool so servers can access them. It virtualizes storage on the main data network or on a storage-area network.
FalconStor has hired a broker to search for a buyer for Network Peripherals' hardware business. NPI makes Gigabit Ethernet switches. The merger will result in a company that has more than 200 employees.