Violin Memory strikes deal with activist; investors unimpressed

|About: Violin Memory, Inc. (VMEM)|By:, SA News Editor

Violin (VMEM) has struck a deal with activist investor Clinton Group under which Violin will add former NetApp strategy chief Vic Mahadevan to its board, and Clinton will back Violin's director slate.

Clinton has been calling on Violin to sell itself, and has even gone as far as to publicly declare the flash storage hardware vendor has received informal interest from five companies. The firm now says it's "supportive" of the steps Violin's board and management have taken to "reorient the Company to an improved strategy for achieving growth and profitability."

Violin has also announced the hiring of former Juniper product management exec Said Ouissal to be its head of product management and strategy. The company named a new operations chief last month, following the February hiring of Kevin DeNuccio as CEO.

Shares are down slightly in spite of a market rally. They're down 59% from their $9 IPO price.