By Combining Premium Consumer Storage Brand with Software Innovator, New
Company Sets Its Sights on Fusing Online Services, Home Storage Networks
and Memory Solutions
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
http://www.simpletech.com. Fabrik's cutting-edge software and online services
includes myfabrik (http://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
(http://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
(http://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 http://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 http://www.myfabrik.com.
Contact:
Erin Hartin
Fabrik/SimpleTech
Corporate Communications
ehartin@fabrikinc.com
303-601-8035 direct
SOURCE Fabrik, Inc.
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Related links:
http://www.simpletech.com
http://www.myfabrik.com http://www.myfabrik.com/lite
http://www.vpcap.com http://www.stecinc.com
CONTACT:
Erin Hartin, Corporate Communications of
Fabrik-SimpleTech, +1-303-601-8035, ehartin@fabrikinc.com; or
Chris Knight, Media Relations Manager of Cohn & Wolfe,
+1-415-365-8524, fabrik@cohnwolfe.com, for Fabrik, Inc.
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