Seagate Technology and Xyratex today announced that Seagate will acquire Xyratex in an all-cash transaction for approximately $375 million. Xyratex is the largest disk drive processing equipment supplier to the hard disk drive manufacturing industry. The company claims that more than half of all hard disk drives manufactured worldwide use Xyratex technology.
Xyratex provides disk drive manufacturers with process, inspection and test equipment ranging from substrate and media inspection systems to fully automated and manual solutions that control the operating environment during final drive assembly and testing.
Seagate hardly requires any introduction, it's one of three independent HDD manufacturers left. The company has announced it will operate Xyratex as standalone entity and will focus on opportunities to improve and expand the business.
The transaction is currently expected to close in mid-calendar year 2014. Seagate expects to finance the transaction from existing cash balances and the transaction is not subject to any financing conditions.
