Exclusive: eSys and Seagate end three-year dispute
Hard drive vendor and its former distribution partner reach out-of-court settlement
A three-year legal dispute between IT distributor eSys and hard drive vendor Seagate has finally reached an end after both companies agreed to settle all claims against one another with neither party admitting liability.
Both companies said the terms of the out-of-court agreement would remain confidential.
News of the settlement draws a line under one of the most high-profile clashes in recent channel history. The once-former business partners had made a series of claims against each other during the last three years, leading to cases being filed in the Middle East, Asia and the US.
Singapore-based eSys once ranked as Seagate's largest distribution partner, shipping around eight million hard drives per year and accounting for 6% of the vendor's annual revenues.
The pair's relationship came to an abrupt halt in November 2006 when Seagate terminated its global contract with eSys after alleging that the distributor refused to co-operate with a sales audit.
eSys, which strenuously denied any allegations of irregularities against it, subsequently made a number of counterclaims against Seagate.
Both companies say they have now resolved their differences by recently settling all outstanding claims.
A statement supplied by eSys read:
"eSys Technologies Pte. Ltd Singapore is pleased to announce that Seagate Technology and all of its relevant affiliates and eSys Technologies Pte. Ltd. and all of its relevant affiliates have settled all claims pending between them with no party admitting liability. The parties have agreed that the terms and conditions of the settlement are, and will remain, confidential."
eSys, which distributes components, peripherals and PC systems to customers from more than 35 countries, believes it can now embark on its growth plans without any distractions.
"We are pleased with the amicable resolution of the dispute with Seagate, and it allows the company and its management to focus on growing the business and capitalising on acquisition opportunities that the economic climate has created across the world," said Akash Deep Sharma, director at eSys.
Seagate officials in the US confirmed the settlement, issuing a statement similar to the one released by eSys.