The combined company will operate under the Exabyte name. Juan Rodriguez, former CEO of Ecrix, has joined Exabyte as chief technologist and Kelly Beavers, former president of Ecrix, has joined Exabyte as vice president of marketing.
In the transaction, Exabyte issued 10 million shares of its common stock. At the same time, Exabyte sold 9.65 million shares of its newly issued Series H preferred stock for US$9.65 million to certain parties related to Ecrix.
This merger enables Exabyte to serve the lucrative tape storage automation, high performance and large volume "DDS replacement" markets, according to Bill Marriner, chairman, president and CEO of Exabyte.
"With the finalization of this transaction, we expect to see increased efficiencies in manufacturing, marketing and sales; stronger support for additional OEM and channel business; and a product roadmap that positions the company as a leader in the midrange tape market," he said in a statement.
According to L. Taylor Allis, Exabyte's manager of corporate communications/investor relations, the merger will benefit Mac users through enhanced availability, quality and value for Exabyte's Mammoth, VXA and automation tape storage products. It will also allow Exabyte to distribute a wider range of tape products to its OEM (original equipment manufacturer) customers and to provide increased sales channels and a broader geographical reach for its VXA tape storage products, Allis told MacCentral.
This story, "Exabyte, Ecrix merge" was originally published by PCWorld.