Tandon to Acquire Atasi, Maker of Hard-Disk Drives

Tandon said it agreed to acquire Atasi, a San Jose-based maker of hard-disk drives, for stock worth nearly $5 million.

The deal calls for Tandon to issue 400,000 shares of its common stock for Atasi’s common stock, which is privately held, and an additional $2.75 million worth of stock for Atasi’s preferred shares.

Tandon, a Chatsworth-based maker of personal computers and disk-drive storage devices, said Atasi will operate as a wholly owned subsidiary. In December, Tandon announced a tentative agreement to buy Atasi, at one time a leader in hard-disk drives that emerged in early 1986 from reorganization under Chapter 11 of the U.S. Bankruptcy Code.