Xiotech Moves Headquarters to Colorado
Xiotech Corporation, a manufacturer or data storage systems, has moved its headquarters from Eden Prairie to Colorado Springs, Colorado.
The company recently changed its Web site to reflect the move, which was prompted by its decision to phase out its Minnesota-manufactured Magnitude product line, according to a report by the Pioneer Press.
Executives were not immediately available to comment on the relocation on Monday and Tuesday because they were at an off-site conference, but the Pioneer Press reports that the company started notifying its Minnesota employees about plans for the move in mid-December and made the change official last week.
Brian Reagan, Xiotech's chief marketing officer, told the Pioneer Press that Xiotech is moving because it is phasing out its Magnitude storage line, which was developed in Minnesota. It is instead increasing new products developed in Colorado Springs called Intelligent Storage Element (ISE) storage blades.
According to the St. Paul publication, Xiotech will keep about 30 of its roughly 70 Minnesota employees in its Eden Prairie offices and about 20 of them will relocate to Colorado. The company also eliminated “some jobs” in areas like manufacturing and marketing, but a specific number was not disclosed.
Xiotech was founded in 1995 by local businessmen Phil Soran, Larry Aszmann, and John Guider. In 2000, it was sold for $360 million to Scotts Valley, California-based Seagate Technology, which later spun the company off as an independent private company. Soran, Aszmann, and Guider went on to create another local data network storage company, Compellent Technologies, which was sold in December to Dell, Inc., for $960 million.
The state of Colorado previously piqued the interest of another Minnesota-based company, MoneyGram International, Inc. The company announced in mid-2010 that it was considering moving its headquarters to from Minnesota to either Colorado or Texas. The company ultimately decided on Dallas, Texas, in September.