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

Gigabyte releases Aivia Osmium gaming keyboard

Taiwanese PC hardware maker Gigabyte has launched the Aivia Osmium gaming keyboard, which brings fast response, silent keystrokes and tactile feedback to every gamer out there. The Aivia Osmium is a fully mechanical keyboard and draws its name from the chemical element osmium –...

Officially: Samsung Galaxy S4 to debut on March 14

Samsung has officially announced the launch event for the Galaxy S4 smartphone – the event will take place on March 14 this year in New York City. Samsung, however, did not disclose any details on the upcoming S4 smartphone so the specs list will stay unofficial for another 20 days...

Sony introduces VAIO SA series ultraportable notebooks

Sony has refreshed its ultra-portable VAIO S line with introduction of the new the SA series, a 13.3-inch variant featuring a thin, 0.95 inches casing with elegant design in burnished brown, jet black or platinum silver with magnesium and aluminum materials. This new S Series is packed with...

Leave a comment