The combined company is expected to generate revenues of over $100m in 2013.
Overland Storage has signed a definitive agreement with Cyrus Capital to acquire Germany-based data storage and data protection applications provider Tandberg Data for about $42m.
Following the acquisition, Overland Storage expects to generate revenues of over $100m for the combined entity during the current fiscal.
The integration of the company's will expand Overland's presence in Europe, Asia and the Middle East, and also allow it to leverage the manufacturing facility in China.
Overland Storage president and CEO Eric Kelly said the combination will accelerate the company's strategy of becoming a global leader in the data management and data protection industry.
"The combined company will offer one of the broadest product lines and service offerings in the enterprise storage marketplace, and have the resources necessary to expand our market presence, fuel our growth and deliver innovative products and cloud offerings in the future," Kelly said.
Tandberg Data CEO Patrick Clarke said the company looks forward to joining forces with Overland and combine substantial resources to create a stable platform for profitability, enabling greater focus on accelerating revenue growth.
"Together we will be able to support our customers globally with over 16,000 channel and service partners," Clarke said.
Tandberg Data Holdings supplies data storage and data protection systems for small and medium-sized businesses, remote offices, departments and workgroups.