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
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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.
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