Virtual Instruments has today announced plans to merge with storage performance analytics solution provider Load DynamiX, in a move one analyst claims will help the channel get a "bigger slice of the pie".
Coinciding with the merger, the combined company has secured a $20m (£14.02m) investment funding round led by HighBar Partners and including Azure Capital Partners, Kinetic Ventures and Benhamou Global Ventures, the investment fund founded by Eric Benhamou, former CEO of 3Com.
The combined company will retain the name Virtual Instruments and will be led by current Load DynamiX president and CEO Phillipe Vincent.
Virtual Instruments was founded in Silicon Valley in 2008 and provides customers with storage and analytics products. Load DynamiX was set up in the same year and specialises in storage analytics products. Both firms operate through partners, with Sirius Computer Solutions and Datalink working with the former, and Computacenter with the latter.
Clive Longbottom, founder of analyst Quocirca, said he is hopeful the duo is better together.
"The tooling that both companies had in place was somewhat lacking so bringing them together hopefully they can look through a new viewpoint and bring their best qualities together," he said.
Virtual Instruments' EMEA president Nick Venables left the company last year amid claims that it had failed to secure its next funding round.
Longbottom added that the pair's channel partners could be better off working with the combined entity.
"This merger should give better capabilities to offer to customers," he said. "Instead of losing margin on two products, it gives them the chance to go for a bigger slice of the pie with one product."
Virtual Instruments' soon-to-be CEO Vincent said: "We have created a combination of solutions that no one else in the industry comes close to offering. Given the complementarity of our leadership teams and products, our customers and partners view this as the logical next step in our evolution into the new Virtual Instruments."
John Thompson, CEO of Virtual Instruments, added: "The merger of these two companies is employee and customer driven. The synergies across combined product portfolios are extremely positive and should deliver real value to our combined customer base."
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