Seagate(NASDAQ:STX) has announced it has completed its previously announced acquisition of Xyratex Ltd(NASDAQ:XRTX).
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"Exabyte growth is accelerating, and we are building higher capacity drives to address this growth. 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," said Dave Mosley, President of Operations and Technology, Seagate.
Seagate expects revenue contribution from this acquisition to be between $500 and $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.
