HAVANT data storage firm Xyratex has been bought out by American technology company Seagate for £228.4m.
The transaction has been approved by Xyratex’s board of directors and is subject to customary closing conditions, including a review by regulatory bodies and approval by Xyratex shareholders.
‘Xyratex is very pleased to become a part of Seagate’s industry-leading organisation,’ said Ernie Sampias, chief executive officer of Xyratex.
‘Seagate shares our commitment to innovation and the critical role that test plays in providing the best storage products at the lowest possible cost.
‘After a thorough strategic review process in which we evaluated a wide range of alternatives, the Xyratex board of directors determined that this all-cash transaction with Seagate maximises shareholder value through an attractive premium, and also affirms the significant value that our employees have created.’
Xyratex was formed through a management buyout when multinational technology giant IBM withdrew from its site in Havant – now Langstone Technology Park – in the 1990s.
The firm has grown to become the world’s leading provider of data storage, and although its results have been relatively poor during the past year, it was looking to a bright future.
Seagate specialises in hard disc drive technology, as does Xyratex, and the acquisition will mean Seagate will expand into large-scale data storage.
‘This is a strategically important acquisition for Seagate as we continue to focus on delivering best-in-class storage solutions for our customers,’ said Dave Mosley, president of operations and technology at Seagate.
‘We are also pleased to acquire Xyratex’s storage systems and high-performance computing business, which provides us additional opportunities to serve our customers with a broader array of storage solutions.’