Seagate picks up EVault

Seagate has announced it will be acquiring online service provider EVault in a deal valued at around US$185 million. The move comes as part of its effort to extend the ‘Seagate Services’ group, which aims to offer market-leading services in the areas of data recovery, online recovery and archiving for small and medium businesses.

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By  Dawinderpal Sahota Published  December 28, 2006

Seagate has announced it will be acquiring online service provider EVault in a deal valued at around US$185m. The move comes as part of its effort to extend the ‘Seagate Services’ group, which aims to offer market-leading services in the areas of data recovery, online recovery and archiving for small and medium businesses. Bill Watkins, CEO at Seagate, said: “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. 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 disk 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.” The acquisition of EVault marks the third for Seagate in the services area. In 2005, Seagate purchased digital content protection solution provider Mirra for the home and small business markets as well as in-lab data recovery company Action Front. The hard drive giant believes that these acquisitions provides it with growing opportunities in the storage solutions market and are highly scalable with its technology portfolio and market expertise. With Seagate Services, the company is pursuing markets that it believes are underserved and reckons it can leverage its expertise to address growing customer needs. With an estimated 74 million small and medium businesses worldwide, Seagate believes that one of its most frequently cited IT challenges is improving data availability and recovery. EVault provides online network backup, recovery and data protection solutions and has over 250 employees and 8,500 customers. The acquisition is expected in March 2007.

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