Seagate completes Samsung HDD buyout

MUMBAI: The US-based hard disk supplier Seagate Technology said it has completed the acquisition of Samsung Electronic's hard-disk drive (HDD) business.

Seagate had announced acquisition of Samsung's HDD business in April for USD 1.4 billion in a cash and stock deal. Under the deal, Samsung will transfer the HDD business to Seagate and in return will get about a 9.6 percent stake or 45.2 million shares of Seagate valued at USD 687.5 Million.

Seagate has gained the elements of Samsung's HDD business, including assets, infrastructure and employees that enable the company to drive scale and innovation, Seagate said in a statement here.

The deal will substantially expand Seagate's access in China, Southeast Asia, Brazil, Germany and Russia, while it will increase significantly the ownership position of Samsung in Seagate.

Seagate will retain certain Samsung HDD products under the Samsung brand name for the next 12 months, and maintain or establish a number of independent operations including sales staff, key production lines and R&D, it added.

"Together, Seagate and Samsung have aligned our current and future product development efforts and roadmaps to accelerate time-to-market efficiency for new products and position us to better address the increasing demands for storage," Seagate chairman, president and chief executive Steve Luczo said.

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

"The strategic relationship will open new opportunities for the two companies by mutually complementing each other's creative technology solutions for a broad diversity of IT applications," Samsung vice-chairman for device solutions Oh-Hyun Kwon said.