SAN MATEO, Calif., Feb. 12 /PRNewswire/ -- Fabrik, Inc., a privately owned company, today announced that it has acquired the consumer product business of SimpleTech, Inc., based in Santa Ana, Calif., the No. 3 U.S. provider of hard disk drive-based external, portable and network storage solutions for consumers and small business users. The purchase also includes the company's flash memory cards, USB flash drives and memory upgrades. Fabrik has acquired the consumer business unit in a cash transaction valued at approximately $43 million, subject to certain post-closing adjustments, which includes the brand name "SimpleTech." As the explosive growth of digital content continues unabated, the purchase brings together industry leaders to ignite a vision of creating a complete personal media network of software and solutions that lets people easily store, access, compose, deliver and share their digital content. Fabrik is now positioned to be the innovative powerhouse in networked personal media solutions. "We're excited about the opportunities that lie ahead. This acquisition gives us immediate market access with a well-established brand, strong distribution channels, a talented group of people and a platform of operations that allows us to quickly scale to address market needs," said Mike Cordano, Fabrik CEO and co-founder. "From a competitive perspective, we are without comparison. As a private software and web services company, our cultural DNA and inherent flexibility, allows us to deliver innovative, yet simple and consumer-friendly products and services to the market at a much more rapid rate than traditional players." Since its inception, Fabrik has been executing upon a strategy designed to broaden its customer base and increase growth opportunities. The acquisition of SimpleTech's consumer business, with its well-developed sales channels and broad product offerings is a key element in Fabrik's overall strategic plan. This combination provides a solid foundation for continued growth and expansion in domestic as well as international markets, and differentiates Fabrik as the only software and online services company with a broad presence in the retail channel. "Fabrik is committed to maintaining and growing the entire line of SimpleTech consumer products as it provides an integral platform to deliver our value-added software features and functionality to the market," adds Cordano. "Our goal is to shift the scope of offerings from its current state of hardware and add-on software to a more complete suite of highly-integrated online services, intelligent network appliances and simple-to-use software. This strategy will enable us to deliver an ecosystem of solutions and services for personal media enthusiasts and creative professionals to not only store and protect their digital content but also enable them to access it, share it and publish it from anywhere through a broad range of devices. This approach creates valuable differentiation and a sustainable strategic advantage for our newly combined company." SimpleTech products can be found at major retailers, distributors and online stores in the U.S. and internationally. Information regarding SimpleTech's external, portable and network storage solutions, flash memory cards, USB flash drives and memory upgrades can continue to be found at www.simpletech.com. Fabrik's cutting-edge software and online services includes myfabrik (www.myfabrik.com), which provides a simple, yet powerful way for people to store, organize and share photos, videos, music and documents either publicly or privately; and myfabrik lite (www.myfabrik.com/lite) that serves as a free hosting and delivery conduit for large files and personal media. Fabrik's SimpleTech consumer business operations will remain in Santa Ana, Calif. The product lines being acquired will continue to be marketed under the SimpleTech brand name. The two leading investors in Fabrik are Comventures and Intel Capital. Wells Fargo Foothill, part of Wells Fargo & Company (NYSE: WFC), provided the debt financing for the acquisition. VisionPoint Capital, LLC (www.vpcap.com), member NASD and SIPC, advised Fabrik on the acquisition and the related financings. Note: SimpleTech's OEM/Industrial flash business is now called "STEC" and will be traded on NASDAQ: STEC. Please visit www.stecinc.com for more information. About Fabrik, Inc. Fabrik, Inc., founded in 2005, is a privately owned company based in San Mateo, California. The company's mission is to enable consumers to get the most out of their personal digital media. By allowing people to find, personalize and deliver digital content within their chosen micro-communities, Fabrik evokes freedom of expression through an individual's personal media collection. The company develops software for home network appliances and online services that are marketed directly to consumers and through partnerships with global market leaders. For more information, please visit www.myfabrik.com. Contact: Erin Hartin Fabrik/SimpleTech Corporate Communications email@example.com 303-601-8035 direct
SOURCE Fabrik, Inc.