Seagate Completes Acquisition of Xyratex
March 31 2014 - 4:01PM
Business Wire
Seagate Technology plc (NASDAQ: STX), a world leader in storage
solutions, today announced it has completed its previously
announced acquisition of Xyratex Ltd (NASDAQ: XRTX), a leading
provider of data storage technology.
“Exabyte growth is accelerating, and we are building higher
capacity drives to address this growth,” said Dave Mosley,
President of Operations and Technology at Seagate. “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. The addition of Xyratex helps us fill this important
need and considerably streamlines Seagate’s supply and
manufacturing chains for our core HDD business.”
Jamie Lerner, President of Cloud Systems and Solutions at
Seagate, said, “We are very excited to add Xyratex’s storage
systems and high-performance computing businesses to our core
offerings. This will enable Seagate to provide added value to our
customers through a broader array of storage solutions, which is
particularly important as exabyte growth continues and as
cloud-based business models proliferate. We look forward to
coupling our expertise with the experience and capabilities of the
Xyratex team and working together to accelerate innovation in the
months and years to come.”
Seagate expects revenue contribution from this acquisition to be
between $500 - $600 million, and for the acquisition to be neutral
to earnings per share in its fiscal year 2015, ending July 3, 2015.
All shares of Xyratex are expected to be delisted from the NASDAQ
stock market immediately following the closing.
Allen & Company LLC served as financial advisor and Wilson
Sonsini Goodrich & Rosati served as primary legal advisor to
Seagate in connection with the transaction.
About Seagate
Seagate is a world leader in hard disk drives and storage
solutions. Learn more at www.Seagate.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, each as
amended, including, in particular, statements about our plans,
strategies and prospects and estimates of industry growth for the
fiscal quarter ending June 27, 2014 and beyond. These statements
identify prospective information and include words such as
“expects,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “projects” and similar expressions. These
forward-looking statements are based on information available to
the Company as of the date of this press release and are based on
management’s current views and assumptions. These forward-looking
statements are conditioned upon and also involve a number of known
and unknown risks, uncertainties, and other factors that could
cause actual results, performance or events to differ materially
from those anticipated by these forward-looking statements. Such
risks, uncertainties, and other factors may be beyond the Company’s
control and may pose a risk to the Company’s operating and
financial condition. Such risks and uncertainties include, but are
not limited to: the uncertainty in global economic conditions, as
consumers and businesses may defer purchases in response to tighter
credit and financial news; the impact of the variable demand and
adverse pricing environment for enterprise data storage solutions
and for disk drives, including disk drive capital equipment,
particularly in view of current business and economic conditions;
dependence on the Company’s ability to successfully qualify,
manufacture and sell its enterprise data storage and disk drive
products, including disk drive capital equipment, in increasing
volumes on a cost-effective basis and with acceptable quality,
particularly the new disk drive products with lower cost
structures; the impact of competitive product announcements;
possible excess industry supply with respect to particular
enterprise data storage and disk drive products, including disk
drive capital equipment; and the Company’s ability to achieve
projected cost savings in connection with restructuring plans.
Information concerning risks, uncertainties and other factors that
could cause results to differ materially from the expectations
described in this press release is contained in the Company’s
Quarterly Reports on Form 10-Q filed with the U.S. Securities and
Exchange Commission (the “SEC”) on October 29, 2013 and January 28,
2014, and the Company’s Annual Report on Form 10-K filed with the
SEC on August 7, 2013, the “Risk Factors” section of which is
incorporated into this press release by reference. These
forward-looking statements should not be relied upon as
representing the Company’s views as of any subsequent date and the
Company undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made.
Seagate Technology plcBrian Ziel, 408-658-1540
(Media)brian.ziel@seagate.comChris Merrill, 408-658-1376
(Investors)chris.merrill@seagate.com
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