Western Digital will buy Hitachi GST

Western Digital has announced today that will acquire one of its primary competitors, Hitachi Global Storage Technologies (Hitachi GST), the HDD subsidiary of Hitachi, Ltd. The deal is valued at approximately $4.3 billion and is expected to close during the third calendar quarter of 2011.

Under the terms of the agreement, WD will acquire Hitachi GST for $3.5 billion in cash and 25 million WD common shares valued at $750 million, based on a WD closing stock price of $30.01 as of March 4, 2011. Hitachi, Ltd. will own 10%  percent part of Western Digital and will have two representatives to the WD board of directors. The transaction has been approved by the board of directors of each company and is expected to close during the third calendar quarter of 2011, subject to customary closing conditions, including regulatory approvals.

Western Digital buy HitechiGST

The “new extended” Western Digital company will remain its headquartered in Irvine, California and John Coyne as a chief executive officer of WD, Tim Leyden chief operating officer and Wolfgang Nickl chief financial officer, while the president and chief executive officer of Hitachi GST – Steve Milligan, will join WD at closing as president, reporting to John Coyne.

“The acquisition of Hitachi GST is a unique opportunity for WD to create further value for our customers, stockholders, employees, suppliers and the communities in which we operate,” said John Coyne, president and chief executive officer of WD. “We believe this step will result in several key benefits—enhanced R&D capabilities, innovation and expansion of a rich product portfolio, comprehensive market coverage and scale that will enhance our cost structure and ability to compete in a dynamic marketplace. The skills and contributions of both workforces were key considerations in assessing this compelling opportunity. We will be relying on the proven integration capabilities of both companies to assure the ongoing satisfaction of our customers and to bring this combination to successful fruition.”

Source: Western Digital

Related posts

Genius G-Shot HD500 pocket size camcorder

The Genius G-Shot HD500 is a very competitive 5.0 mega pixel mini pocket size camcorder. You can record high definition video (recorded at 30 fps/1280 x 720 pixels) and the movie clip can be shown on a HDTV using the HDMI cable for ultra fast transfer of HD image and audio data. The 5MP sensor...

Panasonic unveils Toughbook 53 semi-rugged notebook

Although the rugged notebooks are aimed at specific target auditory and are not very popular, the latest member with sturdy construction from the Panasonic's  rugged Toughbook laptop family, comes with a lots of extras that can be found in current generation "normal" notebooks, like Intel's new...

NVIDIA Demonstrates 3D Blu-ray Playback Accelerated On GeForce And 3D Vision Technologies

2010 is poised to be the year where consumers can enjoy stunning 3D experiences across all entertainment mediums, including gaming, photographs, Web browsing, and of course, movies. And, with the forthcoming 3D Blu-ray specification expected to be formally announced later this year, NVIDIA and...

Leave a comment