Seagate Acquires Samsung’s Hard Disk Drive Business

Search

Tech & IT

By Team Diginews4u ⋅ December 20, 2011 ⋅

Seagate, a player in hard disk drives and storage solutions, has acquired Samsung’s hard disk drive (HDD) business.

Under the terms of the transaction announced earlier this year, Seagate has gained select elements of Samsung’s HDD business, including assets, infrastructure and employees that enable Seagate to drive scale and innovation. These assets include Samsung’s M8 product line of high-capacity, 2.5-inch HDDs.

Samsung employees joining Seagate include a number of senior managers and design-engineering employees from Samsung’s South Korea facility, who will focus on development of small form-factor products for the mobile compute market. The companies have informed NY Park, senior vice president and general manager, will oversee Seagate’s product development activities in South Korea and serve as country manager of the design center there. He will report to Bob Whitmore, Seagate’s executive vice president and CTO.

The companies have also extended and improved their existing patent cross-license agreement while also expanding cooperation to co-develop enterprise storage solutions.

The transactions and agreements are expected to expand Seagate’s customer access in China, Southeast Asia, Brazil, Germany and the Russian Federation.

The combined value of these transactions and agreements is approximately US $1.4 bn, consisting of 45,239,490 Seagate Ordinary Shares and the remaining balance settled in cash. In addition, Samsung will designate a nominee to join Seagate’s Board of Directors.

Sphere: Related Content