Xyratex, Baker Street Announce Pact, Perelman, Traub Named to Board
Xyratex Ltd (Nasdaq: XRTX) ("Xyratex"), a leading provider of data storage technology, and its largest shareholder, Baker Street Capital Management, LLC ("Baker Street"), jointly announced today that they have reached an agreement regarding, among other things, the composition of the board of directors of Xyratex (the "Board"). Under the terms of the agreement two directors recommended by Baker Street, Vadim Perelman and Ken Traub, will join the Board.
Mr. Perelman has been appointed to the Board effective April 2, 2013 resulting in a seven-member Board. Mr. Perelman will serve as a Class I director with a term expiring at the 2013 annual general meeting of shareholders, and he will be nominated for shareholder approval at Xyratex's 2013 annual general meeting. Mr. Traub will be appointed to the Board promptly following Xyratex's 2013 annual general meeting and will serve as a Class III director with a term expiring at the 2014 annual general meeting of shareholders.
Mr. Perelman is the managing member of Baker Street and brings to the Board investing and capital markets experience. Mr. Traub has extensive experience as a senior executive and director of public companies.
Under the terms of the agreement, Baker Street, which beneficially owns approximately 22.9% of the outstanding Xyratex common shares, has agreed to vote in favor of the Class I director nominees recommended by the Board and all other matters recommended for shareholder approval by the Board at Xyratex's 2013 annual general meeting. Baker Street has also agreed to certain standstill provisions. Xyratex has agreed that the size of the Board will be set at seven directors after both Mr. Perelman and Mr. Traub join the Board.
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