Box Hill, Artecon to merge
Reflecting ongoing consolidation in the RAID market, New York City-based Box Hill Systems and Artecon Inc., in Carlsbad, CA, have agreed to merge, a deal that is expected to close late next month. While financially Box Hill is acquiring Artecon, officials on both sides depict it as a melding of complementary RAID vendors.
"Technically, it`s true to say we`re acquiring them; however, this is really a merger of equals," says Box Hill CEO Philip Black.
Each share of Artecon common stock will be converted into 0.40 of a share of Box Hill common stock. Artecon preferred stock will also be converted.
The new company will retain the Box Hill name and its position on the New York Stock Exchange. The merger represents the end of the Artecon brand and the beginning of a company led by two CEOs, with Box Hill`s Black and Artecon CEO James Lambert serving as co-CEOs. Black plans to focus on international operations while Lambert will maintain the domestic side.
Box Hill maintains a strong customer base in the financial industry. Artecon`s strengths have been in the telecommunications, government, and Internet service provider areas. As a combined company, officials expect to broaden product lines, increase R&D resources, and improve technical support capabilities.
Officials with both companies expect continuing consolidation in the RAID market. "There`s going to be increased consolidation over the next three to five years, mostly due to the dynamic growth of the industry," says Miles Moore, Artecon`s vice president of marketing. Driving this, according to Moore, are the RAID vendors` continuing realization that they need partners to cover as many customer environments as possible.
Upon finalization of the merger, Black says the combined company may consider a name change as a way to create a new corporate identity. Layoffs are not expected.