Network storage solutions maker Exabyte Corp. and tape backup systems maker Ecrix Corp. announced today the completion of a merger agreement which will combine the two companies. The two organizations say that their merger is motivated by “the complementary nature” of their flagship products — Exabyte’s MammothTape and Ecrix’s VXA drive technologies.
Exabyte will issue 10 million shares of common stock in exchange for all of Ecrix’s outstanding equity. Certain Ecrix investors will invest US$9.4 million in new Exabyte Series H preferred stock (at $1 per share at the time of closing). The transaction has already been approved by the boards of directors of both companies, and is subject to the customary shareholder and regulatory approval. Both companies hope to close the deal by the end of this year.
Exabyte chairman, president and CEO William L. Marriner said that the reliability capacity, price and performance Ecrix’s VXA drive is attractive to the established base of DDS users looking for a migration path forward. That, combined with Exabyte’s name recognition and sales and support channels, provides them with what he calls “an excellent opportunity to capture significant share in this market.”
The combined company will operate as Exabyte Corporation, and will continue to sell products under the MammothTape and VXA brands. VXA tape drives are sold in various capacities and configurations, including external Mac-compatible FireWire versions.
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