Samsung has signed a distribution deal with eSys, whose contract with former partner Seagate was recently terminated over an audit dispute.

eSys joins with Samsung after Seagate clash

The new deal will see the distributor handle Samsung’s entire range of hard disk drives across North America, Canada, Latin America, Europe, the Middle East and Africa.

“This global agreement with Samsung reinforces the market credibility that eSys has come to command in key markets worldwide,” said Neeraj Chauhan, Chief Operating Officer at eSys. “We will fully utilise our expertise, vast network and market knowledge to help Samsung increase its footprint in the hard disk drive segment around the world.”

“We are glad to be associated with a leading brand such as Samsung whose hard disk drives are fast gaining ground globally thanks to its excellent performance and read speed. We look forward to working with Samsung and helping them achieve their business objectives in the most efficient way.”

Vendor Seagate terminated its relationship with eSys, its largest distributor at the time, after it refused access to auditors trying to verify rebate claims. The contract accounted for around £315.7 million of Seagate’s revenue in the 2006 fiscal year. eSys maintains that the audit would have been ‘intrusive’ and in breach of customer confidentiality. During the protracted negations, eSys continued to pay Seagate for raised invoices, but still owes the vendor £50 million.

The details for the Samsung deal are still being worked out at a local subsidiary level in those countries not currently included – namely Ukraine, Russia, Nordic, France, Poland, Spain, Brazil and Germany. An announcement will be made at a later date regarding these areas.

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