Seagate to acquire XIOtech Corp.

By : |December 20, 1999 0

BANGALORE: Seagate Technology has announced that it has acquired XIOtech Corp, a player in virtual storage and storage area network (SAN) solutions.

The XIOtech Magnitude provides over 3TB of performance, centralized storage that can be accessed by multiple servers in a heterogeneous environment. The Magnitude is optimized for SAN applications and SAN technology plays a role in how digital information is stored and managed in the Internet era. According to Seagate, SAN offers 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 various 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, claims a press release.

Pursuant to the agreement, the value of this transaction was about $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 Board of Directors of both companies, but is still subject to conditions of closing, shareholder approval of XIOtech and the required regulatory approvals.

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