Western Digital to acquire Tegile Systems

Western Digital Corp. and Tegile Systems have entered into a definitive agreement under which Tegile, a leading provider of flash and persistent-memory storage solutions for enterprise data center applications, will be acquired by Western Digital. Financial terms of the transaction were not disclosed.  The acquisition is expected to close the week of Sept. 4, 2017, upon satisfaction of certain closing conditions as set forth in the definitive agreement between the parties.

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Tegile has been at the forefront of the flash storage revolution since 2012. With its award winning IntelliFlash™ architecture, Tegile has pioneered a comprehensive storage platform that delivers storage at the speed of flash memory. Tegile will bring to Western Digital over 1,700 new customers, an innovative product portfolio, and a deeply experienced team with a proven ability to deliver value to customers.

In today’s enterprise and cloud-scale data centers, there is growing demand to deploy scalable storage architectures that deliver reliable persistence with high performance and optimal economics for an expanding range of big data and fast data applications. With Tegile’s IntelliFlash™ products focused on fast data, and Western Digital’s ActiveScale products focused on big data, Western Digital’s Data Center Systems (DCS) business unit will be well positioned to fully address the diverse set of needs that organizations have in order to harness the value of their data throughout its lifecycle. 

“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,” said Mike Cordano, president and chief operating officer of Western Digital. “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.”

“We are excited to add this team of deeply experienced storage professionals to Western Digital,” said Phil Bullinger, Western Digital’s senior vice president and general manager of the DCS business unit. “Not only will we gain an exceptional group of team members, but also expand our product offerings in the fast-growing solid-state and hybrid array segments. By combining Tegile’s innovative storage system software with Western Digital's global scale and combination of components and systems, we expect DCS to capture a sizable share of flash array demand. Western Digital is focused on the systems business and this is a significant step forward in advancing our long-term strategy.”Rohit Kshetrapal, chief executive officer of Tegile said, “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. 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.”

The acquisition is expected to accelerate the DCS business unit’s revenue growth as Tegile’s high-value, high-growth flash storage arrays complement the DCS products and can be marketed to Western Digital’s global customer base.
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