Seagate Buys MetaLINCS

By Geoff Duncan December 7, 2007

Storage vendor Seagate is looking to bolster its services business through the acquisition of MetaLINCS, which offers patented "E-Discovery" technology to enterprises who need to search and manage vast amounts of documents and data in order to respond to litigation and court requirements. Financial terms of the acquisition were not disclosed.

Buying MetaLINCS gives Seagate a significant foothold in the growing "E-Discovery" market, whereby enterprises and businesses must manage an increasing amount of electronic documentation and data in order to comply with regulatory agencies and respond to civil and even criminal litigation requirements. Right now, Seagate’s primary revenues derive from hard drive sales, but documentation requirements are expected to have significant impacts on IT infrastructure and solutions vendors over the next few years, and Seagate wants to be in the thick of it. Current MetaLINCS customers include Merril Lynch, Ernst & Young, and even the Department of Justice.

"Today’s announcement represents another strategic step for the Seagate Services Group and further reinforces our commitment to providing customers with innovative technology-based services and solutions that advance their businesses," said Seagate Services Group senior VP and general manager Mark Grace, in a statement. "The addition of MetaLINCS’s solutions will provide our customers with the tools to respond to litigation and compliance requests and help to reduce enterprise E-Discovery costs."

The buy marks the third major acquisition for Seagate in recent years: in 2007, the company bought archiving and backup from EVault for $185 million, and jump-started its services business in 2005 by buying ActionFront, which is now Seagate Recovery Services. Seagate expects to bring all of MetaLINCS’ 50 employees on board, along with having MetaLINCS’ chief Ramon Nunez head up a new e-discovery unit.

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