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Seagate to acquire EVault for $185-m

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DQC Bureau
New Update

NEW DELHI



JANUARY 2, 2007

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Seagate Technology announced the signing of a definitive agreement to acquire

privately held EVault, Inc., in a cash transaction valued at approximately $185

million.

The acquisition of the online backup services provider is part of Seagate's

effort to extend its storage solutions offerings and strengthen the its Services

group. The acquisition is subject to various standard closing conditions,

including applicable regulatory approvals and is expected to close in the third

quarter of Seagate's fiscal year 2007.

The company's strategy for Seagate Services includes offering market-leading

services in the areas of data recovery, online backup/recovery and archiving for

small-medium businesses (SMB).

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"Today's announcement highlights a strategic next step into services,

which is a natural extension of Seagate's core business and will leverage our

brand leadership and channel expertise to deliver solutions to the SMB

market," said Bill Watkins, Seagate CEO. "Over the past three years,

Seagate has been executing a strategy designed to broaden its customer base and

increase growth opportunities by expanding beyond its core hard disc drive

business into the broader storage solutions category. Our objective for Seagate

Services is to become a leading provider of services to manage and protect our

customers' digital content throughout its lifecycle."

EVault is the most recent acquisition in the broader storage solutions area

and the third for Seagate in the area of services. In 2005, Seagate purchased

Mirra, Inc., a provider of networked digital content protection products for the

home and small business markets; and Action Front, a professional in-lab data

recovery company. These acquisitions provide Seagate with growing opportunities

in the storage solutions market and are highly scalable with Seagate's

technology portfolio and market expertise.

With Seagate Services, the company is interested in pursuing underserved

markets where it can leverage leading technology and market expertise, and

provide unique value propositions to address growing customer needs.

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According to analyst reports, there are currently over 74 million

small-medium businesses worldwide, and one of their most frequently cited IT

challenges is improving data availability and recovery.

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