Western Digital bulks up data centre standing with Tegile Systems acquisition

Western Digital bulks up data centre standing with Tegile Systems acquisition

The acquisition is expected to close this week

Western Digital is set to bolster its enterprise data centre clout after striking a deal to acquire data centre storage solutions vendor, Tegile Systems.

Western Digital Corporation and Tegile Systems announced on 29 August that they had entered into a definitive agreement under which Tegile, a leading provider of flash and persistent-memory storage solutions for enterprise data centre applications, will be acquired by Western Digital.

The acquisition is expected to close this week, depending on certain conditions being met.

Founded in 2010, Tegile has made a name for itself thanks to its enterprise-grade range of all-flash and hybrid storage arrays, along with its patented IntelliFlash software architecture, which organises data to reside in the most appropriate media to deliver optimal performance.

Not only will Western Digital get its hands on Tegile’s internally-developed technology thanks to the acquisition, Tegile is also set to deliver over 1,700 new customers to Western Digital, along with a deeply experienced team.

“The Tegile acquisition will fit perfectly in Western Digital’s long-term strategy to deliver high value solutions that address customers’ rapidly evolving storage needs,” Western Digital president and COO, Mike Cordano, said.

“The addition of Tegile’s technology and talented team will advance our goal of solving customers’ most significant challenges in capturing, preserving, transforming and accessing data.

"We welcome the Tegile team to Western Digital and look forward to working together to enhance our leadership position in enterprise and cloud-based storage,” he said.

For Tegile CEO, Rohit Kshetrapal, the acquisition comes after long-term backing by Western Digital.

“Western Digital has been a key partner and long-term investor in Tegile and has already enhanced various aspects of Tegile’s business, including engineering integration, HDD/SSD supply chain efficiencies, go-to-market efforts and customer support,”Kshetrapal said.

“Both Tegile and Western Digital have introduced industry-changing storage products. The Tegile team looks forward to continuing this tradition of innovation as part of the Western Digital family,” he said.

Financial terms of the transaction were not disclosed.

The deal comes after Western Digital’s CEO, Stephen Milligan, reportedly apologised to Toshiba’s CEO over the fierce legal battle the companies engaged in after contentions around the sale of the Japanese tech company’s chip unit sale.

According to Reuters, Milligan said in a letter to Toshiba CEO, Satoshi Tsunakawa, that the litigation between the two companies was regrettable and that he was “deeply sorry for the feelings this has created”.

The companies have been at war over Toshiba’s plan to sell off its chip unit to a consortium of bidders that did not include Western Digital, which claims a stake in some of Toshiba’s chip manufacturing operations.

Toshiba has been trying to sell the unit for months to pay down debt and cover the impact of over US$6 billion in liabilities linked to US nuclear arm Westinghouse.

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