Anaheim, California-based MTI Technology Corp is to put Milpitas peripheral subsystems integrator System Industries Inc out of its long-running misery by acquiring it. System Industries has been racking up losses with the odd profitable quarter for several years now, and the company is to go through Chapter 11 bankruptcy proceedings as part of the merger process. The pair hope to complete the transaction by year-end and the transaction will provide for an undisclosed sun in cash and promissory notes to be distributed to System Industries’ creditors. MTI current shareholders will have 96.7% of the equity of the enlarged company, with System Industries creditors getting the rest. MTI is in the same storage integration business as System Industries, but has been doing rather better, growing to $116m a year this year from just $3m in 1988. System Industries will take that to about $173m a year. MTI currently holds 14 patents in the area of RAID disk arrays, fault tolerance and networking products.
