Seagate all set to buy Xyratex

Dave Mosley, president of operations and technology, Seagate
Dave Mosley, president of operations and technology, Seagate
Hard-disk drive maker Seagate Technology Plc said it would buy network and storage equipment maker Xyratex Ltd in all cash deal for about $374 million.

Seagate claims that this acquisition will strengthen it’s vertically integrated supply and manufacturing chain for HDDs and ensure uninterrupted access to important capital equipment. The acquisition will also expand Seagate’s storage solutions portfolio by bringing Xyratex’s enterprise storage systems and HPC business under its portfolio that would allow it to offer a broader array of storage solutions to its customers.

Dave Mosley, president of operations and technology, Seagate said, This is a strategically important acquisition for Seagate as we continue to focus on delivering best-in-class storage solutions for our customers. As the average capacity per drive increases to multi-terabytes, the time to test these drives increases dramatically. Therefore, access to world-class test equipment becomes an increasingly strategic capability.”

He further added, “As a premier provider of HDD testing equipment, Xyratex is an important partner and we are excited to integrate these important capabilities which will considerably streamline our supply and manufacturing chain for our core HDD business.”

“Xyratex is very pleased to become a part of Seagate’s industry-leading organization,” said Ernie Sampias, CEO, Xyratex. “Seagate shares our commitment to innovation and the critical role that test plays in providing the best storage products at the lowest possible cost.”

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