EMC buys Calif. data-backup software company
Data storage company EMC Corp. of Hopkinton acquired Dantz Development Corp. of Walnut Creek, Calif., the latest move by EMC to strengthen its presence in small and midsize markets.
Dantz makes data backup and recovery software for consumers and small businesses. Its Retrospect software is sold in many retail stores and is included with external hard drives made by Maxtor Corp.
The acquisition marks EMC's first foray into retail software and gives EMC a low-end storage software product to match its hardware. After a brutal sales slump at the turn of the century, EMC recouped by cutting prices on its entire hardware line and by developing new products for smaller companies.
In May, EMC introduced a $6,000 storage array for small and midsize businesses, the lowest-priced hardware product it had ever offered.
Mark Lewis, executive vice president, said the company would pay ''less than $50 million" for privately held Dantz. ''This isn't the largest acquisition we've done, but it's definitely a very strategic one," he said.
Nearly a year ago, EMC completed its $1.3 billion purchase of Legato Systems Inc., a leading maker of backup software for high-end computer systems.
Larry Zulch, chief executive of Dantz, and his 80 employees now report to Lewis.
''We have a very compatible architecture from the product side and very compatible thinking," Zulch said. He added that building reliable systems for data backup and recovery is one of the toughest challenges for many small businesses.
Lewis said Dantz's strength at the lower end of the market suits EMC's effort to expand beyond its stronghold in large corporate data storage centers. ''Dantz has key partners and relationships that we are going to work hard to continue," Lewis said.
Hiawatha Bray can be reached at bray@globe.com. 