CUPERTINO, CA – March 31, 2014 – 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.
Seagate is a world leader in hard disk drives and storage solutions. Learn more at www.Seagate.com.
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 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.