eSys Technologies and Seagate have agreed to settle all claims against each
other with neither admitting liability, thus ending a three-year-long dispute.
Both the companies agreed to keep the terms and condition of the out-of-court
agreement confidential.
“We are pleased with the amicable settlement of the dispute with Seagate. We
will now move ahead and focus on growing the business and capitalizing on
acquisition opportunities that the economic climate has created across the
globe,” commented Akash Deep Sharma, Director, eSys Technologies.
Back in 2006, eSys was the largest distributor of Seagate accounting up to
five percent of the vendor's revenue. This was roughly around $460 million or 80
million hard drive units and was also about 30 percent of eSys's total hard disk
drive distribution. However, the partnership was broke down in November 2006
when Seagate terminated its global contract with eSys alleging that eSys had
refused to cooperate with an audit of Point of Sale records. Seagate claimed
that the eSys officials had indicated that an audit would 'likely reveal'
irregularities. eSys had denied all allegations of irregularities and had
strongly opined that its refusal was due to the intrusive nature of the audit,
which it could not justify to business partners worldwide under normal business
practices.