, a provider of enterprise class data storage subsystems and storage process technology, announced today that it has acquiredOliver Design
, a privately held developer and manufacturer of disk drive media cleaning technology based in Scotts Valley, California in an all-cash transaction for $17.2 million.
Xyratex said in a statement that a key element of its business strategy is to expand its portfolio of test and process technology for the disk drive industry. The acquisition of Oliver Design will combine Xyratex's expertise in high volume disk drive test, servo writing and automated media handling technologies with Oliver Design's extensive experience in the complex media cleaning process.
Oliver Design recorded unaudited revenues of approximately $18 million for the year ending December 31, 2004. Xyratex, which has its headquarters in the UK, expects the acquisition to have a positive impact on earnings in its 2005 fiscal year.
The transaction involves an initial payment of $14.2 million cash, followed by an additional deferred payment of $3 million cash due fifteen months from closing.