Seagate buys a SAN company for stock:
Seagate Signs Definitive Agreement to Acquire
Storage Area Network Pioneer XIOtech Corporation
SCOTTS VALLEY, Calif., Dec. 3 /PRNewswire/ -- Seagate Technology, Inc. (NYSE: SEG - news) today announced
the execution of a definitive agreement to acquire XIOtech Corporation, a leader in virtual storage and Storage Area
Network (SAN) solutions. XIOtech designs, manufactures, and markets high performance, application-driven storage
solutions.
The XIOtech MAGNITUDE provides over 3TB of high performance, centralized storage that can be continuously
accessed by multiple servers in a heterogeneous environment. The MAGNITUDE is optimized for Storage Area
Network (SAN) applications, and SAN technology increasingly plays a critical role in how digital information is stored
and managed in the Internet era. SAN's offer the scalability and manageability advantages of today's network architecture
while significantly increasing network performance by eliminating bottlenecks on the information superhighway. SAN
technology enables migration of critical types of information intelligence from servers to storage platforms. These
intelligent storage platforms can connect directly to the network and to each other, liberating server bandwidth,
significantly increasing network performance and reliability, and substantially reducing network management costs.
XIOtech, a privately-held company founded in 1995 in Eden Prairie, Minnesota, sells and services its products directly
to major corporations worldwide and through an elite group of Reseller relationships and OEM partnerships within the
storage industry.
Pursuant to the agreement, the value of this transaction is approximately $360 million in Seagate common stock and
Seagate anticipates that the transaction will close next quarter. Seagate expects to account for the acquisition as a purchase
transaction. The transaction has been approved by the Boards of Directors of both companies, but is still subject to
normal conditions of closing, XIOtech shareholder approval and the required regulatory approvals.
XIOtech Corporation designs, manufactures, and markets high performance, application-driven storage solutions. The
award-winning XIOtech MAGNITUDE's software-based architecture provides over 3TB of high performance,
centralized storage that can be accessed continuously by multiple heterogeneous servers. The MAGNITUDE is a
Storage Area Network (SAN) in a Box, and with XIOtech's exclusive REDI software family, is the only storage
subsystem to offer server clustering and a true zero backup window. The privately-held company, founded in 1995 in
Eden Prairie, Minn., sells and services its products directly to major corporations worldwide and through Reseller
relationships and OEM partnerships within the storage industry. The Company can be reached at 612-828-5980 or on
the Internet at www.xiotech.com.
Seagate Technology, Inc. is a leading provider of technology and products enabling people to store, access, and manage
information. The Company is committed to providing best-in-class products to help people get information when, where
and how they want it. Seagate is the world's largest manufacturer of disc drives, magnetic discs and read-write heads, an
innovator in tape drives, and a leading developer of business intelligence software. Seagate can be found around the
globe and on the World Wide Web at seagate.com . For automated news, stock and financial information by
phone, dial toll-free 877-SEG-NYSE. Outside the U.S. and Canada, dial 760-704-4368.
Certain statements in this communication are forward-looking statements that involve a number of risks and
uncertainties that could cause actual results to differ materially from the future results expressed or implied by the
following: the uncertainties related to the design, development and production of new or updated products based on new
technologies, including the manufacturing ramp and customer acceptance; the highly competitive nature of Seagate's
industry and the SAN industry; rapid technological change within Seagate's industry and the SAN industry; the
uncertainty of patent and proprietary technology protection and intellectual property rights; the importance of retention
and attraction of technical and other employees by Seagate and XIOtech; general economic and business conditions and
other factors listed in the reports filed by Seagate periodically with the Securities and Exchange Commission.
NOTE: Seagate and Seagate Technology are the registered trademarks of Seagate Technology, Inc. All other trademarks
are the property of their respective owners.
SOURCE: Seagate Technology, Inc. |
