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eSys looks to Samsung after Seagate row

eSys looks to Samsung after Seagate row

After having its distribution deal with Seagate canned due to auditing issues, Singapore's eSys Technologies has bounced back in quick time.

The distributor has signed up to carry Samsung's entire range of hard drives across most of the world including major markets in North America, Canada and a large slice of Europe.

While local subsidiary, eSys Integrated, was not included in the initial Samsung announcement, managing director, George Skaf said talks were well under way.

"We have not tied up relationship in Australia as yet, but we are in final negotiations and they are going well," he said in a statement. "We hope to have an announcement in the next few weeks."

Samsung was given the opportunity to comment but had not replied at press time.

The relationship between eSys Technologies and Seagate broke down when eSys would not allow third-party auditors to examine its accounts to confirm the accuracy of its claims for credits under Seagate's distributor sales incentive program.

The decision not to allow the auditors to examine the accounts came after several weeks of talks between the two companies related to the audit, Seagate said in a filing to the US Securities and Exchange Commission.

At the time, Skaf said he was unable to comment on what had transpired between Seagate and the Singapore branch of eSys. However, he said eSys Integrated was no longer working with the vendor.

While the distributor relationship between Seagate and eSys Technologies was over, the hard-disk maker insisted it would pursue its contractual right to a third-party audit of eSys sales records, as well as claims for any "intentionally wrongful conduct", the filing said.

Prior to being dismissed, eSys Technologies was Seagate's largest distributor.


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