Seagate to Acquire XIOtech

Seagate Technology signed a definitive agreement to buy XIOtech for $360 million worth of Seagate common stock.XIOtech designs, manufactures, and markets high-performance, application-driven storage solutions. Founded in 1995, privately held XIOtech sells and services its products directly to major corporations worldwide through resellers and OEM partnerships in the storage industry.XIOtech’s MAGNITUDE provides more than 3TB of high-performance, centralized storage that can be accessed continuously by multiple servers in a heterogeneous environment. MAGNITUDE is optimized for Storage Area Network applications.Seagate officials anticipate that the transaction will close first-quarter 2000. The transaction has been approved by both companies’ boards of directors, but is subject to normal closing conditions and approval by XIOtech shareholders and regulatory agencies.