Storage vendor Seagate Technology late last week announced a finalised agreement to buy Xiotech Corp.
Xiotech is the maker of the SAN (storage-area network) product Magnitude. The stock-swap deal to acquire the privately held Xiotech is valued at about $US360 million, Seagate said in a statement. The boards of both companies have approved the sale. Shareholder approval is still needed. The company expects to complete the acquisition by the first quarter of 2000, Seagate said.
In October, Seagate reported a diluted fourth-quarter net profit of $US2 million with per share earnings of one cent each. Revenue for the quarter ending October 1 was $1.7 billion, Seagate said.