Menu
Samsung to sell HDD unit to Seagate

Samsung to sell HDD unit to Seagate

Samsung Electronics will sell its hard-disk drive operations to Seagate Technology in a US$1.375 billion deal that will create strong links between the two companies the companies announced.

The deal stands to solidify Seagate's position as the world's second-largest maker of hard disk drives and comes less than a month after market leader Western Digital said it would buy Hitachi GST. If both deals go through, the hard disk drive market will have just three players by the end of the year, the other being Toshiba

Seagate will pay around $1.375 billion for Samsung's hard-disk operations, half in cash and half in Seagate shares.

The companies expect to complete the deal by the end of 2011, at which time Samsung will own around 9.6 percent of Seagate. It will also get to nominate a member to Seagate's board of directors.

In addition to the transfer of the hard disk drive business, the two companies will expand an existing patent cross-licensing agreement and collaborate on development of enterprise storage systems. Samsung will supply flash memory chips for use in Seagate's solid-state drives and Seagate will supply disk drives for use in Samsung's PCs, laptops and consumer electronics products.

Seagate said the deal will give it better access to potential customers in China and Southeast Asia, and a steady supply of flash memory chips for its expanding range of solid-state drives. It should also mean faster development cycles for both companies, according to Seagate.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags international news

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments