Exabyte is being purchased by video-conferencing systems vendor Tandberg for US$28 million (NZ$42 million).
Exabyte, founded in 1987 and one of the last remaining independent tape library manufacturers, put itself up for sale two months ago.
The acquisition, by Tandberg’s US subsidiary, is scheduled to close pending approval by Exabyte common shareholders in October or November, Exabyte says.
Exabyte intends to liquidate immediately after the transaction.
All Exabyte employees will be offered positions with Tandberg, and it is expected that Exabyte management will continue as well, Exabyte says.
Exabyte’s end is indicative of where the tape market is headed, says IDC analyst Robert Amatruda. He says a number of companies in the tape market have either been purchased or are in partnerships with larger companies such as Dell, Hewlett Packard, IBM and EMC.