HP today announced it has signed a definitive agreement to acquire LeftHand Networks Inc., a leading provider of storage virtualization and iSCSI storage area network (SAN) solutions.

LeftHand Networks' solutions enable midsize companies and remote offices or branches of large corporations to easily and cost-effectively protect critical business data. HP has agreed to purchase LeftHand Networks for $360 million in cash, subject to certain purchase price adjustments.

Founded in 1999, LeftHand Networks is privately held and headquartered in Boulder, Colo. It has 215 employees and more than 500 resellers and distributors worldwide. The company has more than 11,000 installations across 3,000 different customers.

The transaction is subject to certain closing conditions and is expected to be completed in HP’s first fiscal quarter of 2009. Following completion, the business will be integrated into the HP StorageWorks division within the Technology Solutions Group at HP.

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FIRMS

LeftHand Networks

Founded in 1999, LeftHand Networks pioneered IP-based storage area networks (SANs). SANs built using LeftHand Networks' SAN/iQ® software are uniquely able to distribute and protect data across a cluster of industry-standard storage servers. The company's patented architecture increases data availability, allows users to start small and grow the SAN seamlessly, and simplifies management. The LeftHand SAN is ideal for storage and server consolidation, multi-site SANs and disaster recovery. LeftHand SANs are available in the United States, Canada and throughout Europe.

About Hewlett Packard

HP, the world's largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008.

PEOPLE

Dave Roberson, senior vice president and general manager, StorageWorks Division, HP

Bill Chambers, chief executive officer, LeftHand Networks

LINKED TO

The company raised three rounds of venture capital funding totaling $75 million, completing its C round of $25 million led by Valhalla Partners with participation by JP Morgan Chase in September 2005. Earlier investors include Appian Ventures Inc.; Boulder Ventures Ltd.; Epic Ventures; Garage Technology Ventures Ltd.; Ironside Capital Group; Katalyst Venture Partners; New World Ventures; Portage Venture Partners; Sequel Venture Partners; Sprout Group, the venture arm of Credit Suisse First Boston; and Vista Ventures Partners.