Tuesday, December 12, 2017
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Facebook to Book Advertising Revenue Locally Following Pressure
New Radeon Software Adrenalin Edition Provides Amped-Up Connected Gaming
Nintendo Says Switch Sells 10 Million Worldwide
Toshiba Unveils Embedded NAND Flash Memory Products for Automotive Applications
FCC to Hand Over Internet Oversight to FTC
Japan Display Develops 803ppi LCD Designed for Virtual Reality Applications
Samsung TVs to Start Streaming Amazon HDR10 Plus Video Content
Toshiba and Western Digital Close to Agreement Over Memory Chip Sale
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > PC Parts > Western...
Last 7 Days News : SU MO TU WE TH FR SA All News

Monday, March 07, 2011
Western Digital Acquires Hitachi Global Storage Technologies


Western Digital (WD) and Hitachi, Ltd. have entered into a definitive agreement to transfer Hitachi's Hard Disc Drive (HDD) business to WD.

WD plans to acquire Hitachi Global Storage Technologies (Hitachi GST), a wholly-owned subsidiary of Hitachi, Ltd., in a cash and stock transaction valued at approximately $4.3 billion.

Hitachi Global Storage Technologies (Hitachi GST) develops advanced hard disk drives, enterprise-class solid state drives and external storage solutions and services.



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 approximately ten percent of Western Digital shares outstanding after issuance of the shares and two representatives of Hitachi will be added to the WD board of directors at closing. 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. WD plans to fund the transaction with a combination of existing cash and total debt of approximately $2.5 billion.

The new company will retain the Western Digital name and remain headquartered in Irvine, California. John Coyne will remain chief executive officer of WD, Tim Leyden chief operating officer and Wolfgang Nickl chief financial officer. Steve Milligan, president and chief executive officer of Hitachi GST, 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."

"This brings together two industry leaders with consistent track records of strong execution and industry outperformance," said Steve Milligan, president and chief executive officer, Hitachi Global Storage Technologies. "Together we can provide customers worldwide with the industry's most compelling and diverse set of products and services, from innovative personal storage to solid state drives for the enterprise."

Hiroaki Nakanishi, president, Hitachi, Ltd. said, "As the former CEO of Hitachi GST, I always believed in the potential of Hitachi GST to become a larger and more agile company. This is a strategic combination of two industry leaders, both growing and profitable. It provides an opportunity for the new company to increase customer and shareholder value and expand into new markets. Additionally, it is important to us that WD shares common values with Hitachi GST to create a more global company that is well positioned to define a broader role in the evolving storage industry."

With its purchase of Hitachi GST, Western Digital will pad its lead in the global HDD market, giving it nearly double the market share of No. 2 supplier Seagate Technology LLC., according to iSupply. With the purchase, WDC will claim 49.6 percent share of global Hard Disk Drive (HDD) unit shipments based on fourth-quarter totals, compared to 29.4 percent for Seagate. This will give WDC a lead of 20.2 percentage points over Seagate, up from a mere 2 points without the acquisition.

WD's move will also allow WDC to enter the critical enterprise HDD segment. WDC currently is only a marginal player in the enterprise HDD market, with nearly all of its sales going instead to the market for consumer drives, an area that includes products like desktop and mobile PCs, set-top boxes and video game consoles, according to iSupply data. Of all of the major HDD suppliers, Western Digital in the fourth quarter of 2010 had the smallest share of any company?s total shipments going to the enterprise segment, at less than 1 percent. In comparison, 65 percent of Seagate?s HDD shipments and 27 percent of Hitachi GST?s shipments went to the enterprise market.

Last December, Western Digital had tried to buy rival Seagate and was refused amid concerns the deal would have faced antitrust issues.


Previous
Next
Sony Brings Thin VAIO S Laptom Series In U.S.        All News        Google Removes Malicious Apps From Android Market
Sony Brings Thin VAIO S Laptom Series In U.S.     PC Parts News      Intel Talks About Oak Trail, Sandy Bridge And Mini-ITX Motherboards at CeBIT 2011

Get RSS feed Easy Print E-Mail this Message

Related News
Toshiba and Western Digital Close to Agreement Over Memory Chip Sale
Toshiba Moving Closer to Deal With Western Digital
Western Digital to Bring RISC-V Processors into Drives, AI
Toshiba in Ongoing Discussions for Chip Business Sale
Western Digital Releases 400GB microSD Card
Toshiba Stops Blocking Western Digital Access to Chip JV, Invests in new chip line without Western Digital
Toshiba to Notify Western Digital Before Closing a Memory Sale
Toshiba Resumed Blocking Western Digital Access to JV Database
Toshiba to Delay Chip Unit Deal Until July 28
Court Says Western Digital Should Have Access Toshiba's Technical Databases
Western Digital Responds to Toshiba's Actions
Toshiba Open to Further Talks With Western Digital About Chip Unit Sale

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2017 - All rights reserved -
Privacy policy - Contact Us .