Overland Storage, a San Diego maker of data storage devices, has purchased the Snap Server storage appliance business from Adaptec for $3.6 million.
Overland said the acquisition broadens its product lines by adding network-attached storage aimed at small and medium-sized businesses. Overland specializes in providing data storage systems for remote locations of larger companies, among other services.
Overland has been struggling since losing a contract to build tape data storage devices for Hewlett-Packard, which the technology giant sold under its own brand name. The HP contract made up about half of Overland's revenue.
About 50 Adaptec workers will receive offers to join Overland. They will remain in the same facility in Milpitas, which Overland is leasing from Adaptec.
Overland's shares rose 8 cents to close at $1.16 in Nasdaq trading.
