Dave Mosley: Seagate Targets Drive Test Market Demand with Xyratex Buy

Dave Mosely, Seagate - ExecutiveMosaic
Dave Mosley

Seagate Technology (NASDAQ: STX) has acquired data storage technology provider Xyratex (NASDAQ: XRTX) in a move to help customers fulfill test requirements for higher-capacity drives.

Dave Mosley, president of operations and technology at Seagate, said Monday the company also intends for the Xyratex purchase to help streamline the supply and manufacturing chains for its hard disk drive business.

“The time required to properly test these higher capacity drives is increasing dramatically, making it strategically important to have uninterrupted access to world-class test equipment and engineering resources, ” added Mosley.

Seagate expects the acquisition to increase its revenue to $600 million and be neutral to the firm’s earnings per share for its 2015 fiscal year, ending July 3.

Allen & Company LLC and Wilson Sonsini Goodrich & Rosati served respectively as financial adviser and primary legal advisor to Seagate.

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