M&A News: Tech-Led Investment Group Snaps Up Drobo

Storage array vendor Drobo has been acquired by an investment group comprised of technology executives for an undisclosed sum, effectively separating the company from parent organization Connected Data.

Mihir Shah will assume the role of CEO at Drobo, responsible for leading the company after the split. Shah, who served as managing director of Corporate Development and Strategy at Brocade, has also served in executive-level roles at IBM and is currently listed as CEO of BlueFin Technologies, according to LinkedIn.

“Drobo is at an exceptional point in its growth and execution strategy,” said Shah, in a statement. “Its simple-to-use technology, market adoption and brand recognition make Drobo a very compelling investment opportunity. I anticipate continued rapid growth for Drobo as we engage our escalated execution and expansion strategy for 2015 and beyond.”

Drobo will continue to offer its complete portfolio of storage arrays following the acquisition, which is effective immediately, according to the announcement. The company merged with Connected Data in 2013 and has since restructured enough to become profitable, said Geoff Barrall, founder and CEO of Connected Data and the original founder of Drobo.

“Drobo offers innovative technology that is ideally suited for the demanding, high-capacity needs of today’s business users,” said Barrall. “With separate target customers and markets, it made sense to separate the companies, so that each can benefit from a more dedicated management team and focused strategic execution for the next phase of growth.”

Barrall will remain on Drobo’s board of directors, with both companies expected to continue developing Connected Data’s Transporter private cloud appliance portfolio, according to the announcement. The acquisition will be a seamless transition for customers, partners and employees.

Earlier this month, Connected Data announced the launch of its Excelerate Partner Program to help resellers grow their businesses in the file sync and share markets, with members expected to receive NRF pricing for 45 percent off MSRP, according to the company.