Exabyte and Ecrix Sign Merger Agreement - EnterpriseStorageForum.com

Exabyte and Ecrix Sign Merger Agreement

Exabyte Corporation, a network storage vendor, and Ecrix Corporation, a privately held provider of value tape solutions for midrange servers and high-end workstations, this week announced the completion of a definitive agreement to combine the two companies.

The companies said the merger is motivated by the complementary nature of Exabyte's MammothTape(TM) and Ecrix's VXA(TM) drive technologies and numerous synergies to be realized from the combination of the two businesses.

Under the terms of the merger agreement, Exabyte will issue 10 million shares of common stock in exchange for all of the outstanding equity of Ecrix. Additionally, certain Ecrix investors and persons related to them will invest $9.4 million in new Exabyte Series H preferred stock at $1.00 per share at the time of closing. The preferred stock will be convertible into common stock on a share-for-share basis.

The transaction has been approved by both boards of directors and is subject only to the approval of both companies' shareholders and other closing conditions. The merger is expected to close by the end of 2001.

Comment and Contribute


(Maximum characters: 1200). You have characters left.



Storage Daily
Don't miss an article. Subscribe to our newsletter below.

Thanks for your registration, follow us on our social networks to keep up-to-date