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AOL buys online locker provider

With rivals offering secure online storage space on their servers, AOL picks up Xdrive, which operates online storage and backup services.

America Online on Thursday announced the acquisition of Xdrive, a privately held company specializing in online storage and backup services.

Xdrive will now operate as wholly owned subsidiary of AOL under its digital services business unit, and will remain at its current location in Santa Monica, Calif. The company's management team and 34 employees will now report to Gio Hunt, senior vice president of new business ventures at AOL.

Financial details of the deal have not been disclosed.

AOL said Xdrive would continue to serve existing customers. Xdrive manages an online storage platform that lets subscribers access and protect their digital assets, such as music and video, from any location. It offers users storage safety and security and automatic backup, AOL said.

Rival Internet companies are touting online storage offerings designed to let subscribers store anything they want in secure servers. AOL has also been showing interest in expanded storage for its members.

"The digitization of consumer home media is skyrocketing, with consumers and AOL members increasingly looking for easier ways to protect and manage a wide variety of important data files and digital media assets," Hunt said in a statement. "Xdrive will further enhance AOL's consumer storage offerings to deliver a more safe and secure digital lifestyle for our members."