Wait, don't miss out on the latest GovCon industry news!

Sign Up Now! GovCon Wire provides you with Daily Updates and News Briefings

*By clicking "Join us now" you agree to receive email, promotions and general messages from GovCon Wire, In addition, you also agree to GovCon Wire Privacy Policy and Terms & Conditions.

X Remind me Later

Seagate to Buy Xyratex, Operate Enterprise Data Storage & Computing Tech as Standalone Entitity; Dave Mosley Comments

Dave Mosely,  Seagate - ExecutiveMosaic
Dave Mosely

Seagate has agreed to a deal to acquire Xyratex in an effort to strengthen the supply and manufacturing chain for the hard disk drives it produces, the two companies said in a joint release Monday.

Xyratex creates testing systems for hard disk drives (HDD), and Dave Mosley, president of operations and technology at Seagate, said the acquisition aims to help streamline its HDD production.

“As the average capacity per drive increases to multi-terabytes, the time to test these drives increases dramatically, ” Mosley said. “Therefore, access to world-class test equipment becomes an increasingly strategic capability.”

Under the definitive agreement between the two companies, Seagate also intends to grow Xyratex’s enterprise data storage systems and computing technologies as a separate operation.

The companies expect the all-cash transaction to close in mid-2014, subject to closing conditions.

GovCon Wire Logo

Sign Up Now! GovCon Wire provides you with Daily Updates and News Briefings about M&A Activity

Related Articles