Deal or No Deal for DataDirect Networks

Last week there was an FTC filing that implied a pending transaction between Technology Crossover Ventures and DataDirect Networks, a Chatsworth, Calif.-based provider data storage solutions. These documents usually suggest that the transaction is virtually a done deal, with just a few I’s to dot and T’s to cross. But in might not be so this time.

What follows is part of a statement by DataDirect CEO Alex Bouzari, in reply to my request for comment on the prospective TCV investment:

In order to better serve our customers, DDN is evaluating several strategic initiatives, including potentially partnering with a financial institution. However, in light of the recent developments with 3Par, Dell and HP, we are carefully rethinking our options.

Bouzari added that DataDirect is profitable, and is “on track” to exceed $200 million in annual revenue.

Getting any statement from a “target” CEO is unusual, and this particular one goes out of its way to suggest that conditions have changed since DataDomain DataDirect first entered negotiations with TCV (which declined any comment). (Note: The previous sentence was corrected because the company was referred to by the wrong name. -Ed.)

Maybe Bouzari is just trying to prevent me from prematurely breaking his big news. Or maybe he’s using the statement to lure other suitors. Or maybe it’s just as he said: The past few weeks have been tumultuous for the storage industry, and DataDirect is waiting to see where the chips fall.