"We used part of it to do the acquisition, and the remainder of it will be used to get the [ASA] technology into a shape that we can take to market," says Casey Powell, Xiotech's CEO.
Xiotech nabbed Seagate's highly secretive ASA Group for an undisclosed fee earlier this month, prompting speculation that the vendor was planning to develop some form of storage controller.
Set up just over five years ago, the ASA division was formed to develop "next-generation architectures" for Seagate's OEM partners, which include IBM and EMC.
Xiotech, which has been attempting to branch out into new areas, has not said what it will do with the ASA division, though the vendor offloaded its own proprietary RAID controller some years ago in favor of controllers sourced from other firms, which are now built into its Magnitude 3D system. And there has been talk that the ASA group was working on controller-related technology at Seagate.