EMC acquires Kashya for $153 million

The key to business continuity: Data replication. Everything else a business may do to cope with a disaster would not mean much if the data on which the business depends is destroyed. Back-up and replication solution are thus hot items, and this is why San Jose, California-based EMC Corporation, a specialist in information management and storage, has acquired Ramat Gan, Israel-based Kashya, a privately held provider of enterprise-class data replication and data protection software. The company was acquired in a cash transaction valued at approximately $153 million. Kashya will be integrated immediately into the EMC Software Group, but the acquisition is not expected to have a material impact on revenue and EPS for 2006.

The acquisition makes sense, as the companies strengths — heterogeneous replication software in the case of Kashya, virtualization and continuous data protection technologies in the case of EMC complement each other nicely. The Kashya acquisition would benefit EMC in two ways: Kashya is a technology savvy company, and it would enhance the storage virtualization and recovery management offerings of EMC. Specifically, Kashyas continuous data protection (CDP) technology would enhance EMCs information lifecycle management (ILM) solutions. In addition, Kashyas Israel-based R&D operation will now form the core of the new, innovative EMC Israel Software Development Center, creating new center of innovation for EMC software development. For Kashya, being acquired by EMC would allow greater presence in the market, solidifying an already strong position in the emerging field of network-based data replication and data protection.

To date, some $25 million have been invested in Kashya.