Expansion into Storage Services Is Company’s Next Step
Seagate Technology has announced it will aquire EVault Inc., a highly regarded provider of online backup services for business, for a cool $185 million dollars. The buy is the biggest step yet taken by Seagate in an attempt to strengthen its position in the storage services industry. This is Seagate’s second purchase in the storage services arena in the past two years. The deal is reported to be expected to close by the end of March.
Back in 2005 Seagate purchased Mirra Inc., a company that provides digital content protection products for home and small business applications. The largest manufacturer of hard drives also purchased Action Front, a professional data recovery company. The Cayman Islands based company intends to offer data recovery, online backup and recovery, and archiving solutions for small to medium size businesses through the purchase of EVault.
EVault was founded in 1997 and is based in Emeryville, California. Seagate plans to operate the recently purchased company as a wholly-owned subsidiary. Seagate has seen a 34 percent rise in share prices this year. The Merrill Lynch Technology 100 Index, of which Seagate is a component, rose 11 percent this year.