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Seagate to acquire Xyratex

Seagate Technology and Xyratex Ltd, a provider of data
storage technology, have entered into a definitive agreement under which
Seagate will acquire all outstanding shares of Xyratex in an all-cash
transaction valued at $13.25 per share.

Xyratex has developed a leading hard disk drive (HDD)
capital test equipment business. The acquisition of this business will further
strengthen Seagate’s vertically integrated supply and manufacturing chain for
disk drives and ensure uninterrupted access to important capital equipment.

Seagate Technology and Xyratex Ltd, a provider of data
storage technology, have entered into a definitive agreement under which
Seagate will acquire all outstanding shares of Xyratex in an all-cash
transaction valued at $13.25 per share.

Xyratex has developed a leading hard disk drive (HDD)
capital test equipment business. The acquisition of this business will further
strengthen Seagate’s vertically integrated supply and manufacturing chain for
disk drives and ensure uninterrupted access to important capital equipment.

The acquisition also expands Seagate’s storage solutions
portfolio by adding Xyratex’s industry-leading enterprise data storage systems
and high-performance computing business. Seagate will operate this business as
a standalone entity and will focus on opportunities to improve and expand the
business.

The transaction has been approved by Xyratex’s board of
directors and is subject to customary closing conditions, including review by
regulatory bodies and approval by Xyratex shareholders. 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.

By CIO staff

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