Xiotech Signs Agreement to Acquire Daticon Inc.19 January 2006
Xiotech(R) Corporation said today it has reached agreement with Daticon Incorporated to purchase the assets of that company. Daticon is a Norwich-based litigation support and document conversion services company that filed for Chapter 11 bankruptcy today. Xiotech is pledging to keep Daticon's operations based in Norwich, Conn., protecting the company's 170 local jobs.
The purchase agreement is subject to the approval of U.S. Bankruptcy Court, District of Connecticut.
Xiotech is a privately held data storage company based in Eden Prairie, Minn. The company has approximately 300 employees and $100 million in revenues. The company's CEO, Casey Powell, is a 30-year veteran of the technology industry and a native of Groton, Conn.
Daticon, with offices in the Norwich Business Park, manages paper and electronic documents for law firms, corporations and government agencies involved in extensive litigation, merger activities or regulatory-compliance matters, including the Securities and Exchange Commission, the Federal Trade Commission and the Justice and Defense departments.
Xiotech's Powell said there is an opportunity for Daticon to expand its electronic data discovery services, leveraging data storage and management expertise from Xiotech.
"Daticon is a recognized leading provider of litigation support and document conversion services," said Powell. "This is a complementary capability which we can leverage as we address the needs of the rapidly growing Electronic Data Discovery (EDD) marketplace."
When the acquisition is completed, Daticon will operate as a separate division of Xiotech.
According to industry analyst Michael Clark of research firm EDDix LLC, the current electronic data discovery market is estimated at $1.8 billion and growing at a rate of at least 35% per year.
"To capitalize on growing opportunities around EDD, existing e-discovery companies will need more expertise in data storage and management," Clark said. "Combining a company like Daticon with Xiotech brings together a lot of the right capabilities."
Analyst Tony Asaro, of data storage research firm Enterprise Strategy Group, said storage companies also need credibility and expertise in the legal services market. "Managing electronic evidence is all about providing timely recovery of data as part of a discovery process for litigation, audits and to regulatory purposes. Our research shows that it is of growing importance to IT professionals, record management personnel, legal professionals and corporate executives. It requires more than traditional data management capabilities."
Xiotech's Powell was the co-founder, chairman and CEO of Sequent Computer Systems, which was ultimately acquired by IBM for $810 million. He also held several executive positions with Intel. He joined Xiotech in February 2005 and established two primary goals for the company. The first goal was to focus on business fundamentals and the second goal was to define and execute a long term strategy that would ultimately differentiate Xiotech in the marketplace. The company has successfully addressed both areas and, with this acquisition, plans to accelerate its growth.
Xiotech has 1,500 customers including Merrill Lynch, Lucent, Bechtel and St. Vincent Hospital. The profitable, ten-year-old company has established a reputation for making information storage easier for organizations to manage.
About Xiotech
Xiotech(R) makes information storage easy to manage. Since 1996 more than 1,500 midsized enterprises have taken advantage of Xiotech's easy-to-use and highly resilient storage management solutions. The company's products include Magnitude 3D(R) 3000s, Magnitude 3D 3000e and TimeScale(TM) replication appliances. Current customers include Merrill Lynch, Bechtel, Lucent, Hibernia Bank and St. Vincent Hospital. Xiotech also partners with industry leaders such as Brocade, Cisco, McDATA, Microsoft and Novell. Xiotech is based in Eden Prairie, Minn. For more information, visit http://www.xiotech.com , email info@Xiotech.com or call toll free 1.866.472.6764.
Xiotech, Magnitude, Magnitude 3D, REDI Software, Zero Server Footprint, Dimensional Storage Cluster, SAN in a BOX, TimeScale, DataScale, as simple as possible and GEORAID are trademarks or registered trademarks of Xiotech Corporation. All other trademarks or service marks are the property of their respective owners.
*All trademarks are the property of their respective owners.
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
