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Xyratex RAIDs Ario IP

Picks up RAID code to protect product line acquired from nStor

Xyratex made a small acquisition today to help protect a larger pickup it made 17 months ago.

Xyratex says it has reached a tentative agreement with Ario Data for RAID controller intellectual property and a team of developers. (See Xyratex Buys Ario Data IP.)

The major piece of the acquisition includes RAID code that Ario licensed from nStor, which Xyratex purchased for $21.2 million in July 2005. (See Xyratex Gobbles nStor.)

A Xyratex executive says his company bought the RAID code to make sure neither Ario nor anybody else uses it to compete with the nStor controllers. Like Xyratex, Ario sells products to systems OEMs.

Xyratex did not pick up all of Ario's assets, and Ario remains in business -- for now -- with new management.

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