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

Dell unveiled Latitude E4310, E5410 and E5510 notebooks

The business notebook portfolio of Dell have a new additions with today unveiled three new Latitude E laptops -  13.3-inch Latitude E4310, the 14.1-inch E5410 and 15.6-inch E5510. The first of the trio - Dell Latitude E4310 is just 1.1-inch thick,  starts at $1449 USD and offers 13-inch...

MSI presents the 14-inch CR460 multimedia laptop

The newest member of MSI’s Classic series notebooks is a 14-inch model called CR460, which comes boosted by Intel 2nd generation Core processors, along with LED-backlit display and MSI's ECO Engine power-saving technology. The new laptop measures 344.4(L) X 212(D) X 13.5-28(H)mm, weighs 2.2kg...

SteelSeries unveils new Diablo III - themed gaming peripherals

SteelSeries today has introduced three new gaming peripherals for the Blizzard’s upcoming action RPG sequel Diablo 3. The new Diablo III-themed products include one gaming mouse, one headset and a pair of mousepads, one of which was already announced last year. The SteelSeries Diablo III...

Leave a comment