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!

Error: Please check your email address.

Tags international news

Featured

Slideshows

Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
Show Comments