Western Digital acquires Hitachi Global Storage Technologies
- 07 March, 2011 22:00
Western Digital has announced the acquisition of Hitachi Global Storage Technologies, a transaction valued at approximately US$4.3 billion. Under the terms of the agreement, WD will acquire the Hitachi subsidiary for $3.5 billion in case and 25 million WD common shares valued at $750 million, based on a WD closing stock price of $30.01 on 4 March 2011. With this deal, Hitachi will own approximately 10 percent of WD shares and will be added to the WD board of directors. The deal has been approved by the boards of both companies and is expected to close during the third quarter of 2011. “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 and 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 company that will result from this deal will retain WD’s name and stay headquartered in California. John Coyne will remain chief executive officer of WD, with Tim Leyden as COO and Wolfgang Nickl as CFO. Steve Milligan, president and CEO of Hitachi GST, will join WD at closing as president, reporting to John Coyne.