Western Digital to buy Hitachi GST for $4.3 billion cash, and stock

By on Mar 7, 2011 in Business, Technology Comments

Western Digital (WD) has agreed to buy Hitachi Global Storage Technologies for $4.3 billion in cash and stock, as announced by the company on Monday.

According to a press release at Western Digital’s official website, the company will acquire Hitachi GST in cash and stock, a transaction amounting to approximately $4.3 billion.

As part of the agreement, WD will pay $3.5 billion to Hitachi GST and 25 million WD common shares that will reach $750 million, which was based on the closing stock price of WD as of March 4, 2011, $30.01 per share.

Meanwhile, Hitachi is being expected to own 10 percent of WD shares which has been approved by the Board of Directors of both parties, as the transaction will take effect to close on the third calendar quarter of this year.

“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,” WD CEO and President John Coyne said on the report.

“We will be relying on the proven integration capabilities of both companies to assure the ongoing satisfaction of our customers and to bring this combination to successful fruition.” He added.

“This brings together two industry leaders with consistent track records of strong execution and industry outperformance,” Hitachi GST president and CEO Steve Milligan meanwhile said.

“Together we can provide customers worldwide with the industry’s most compelling and diverse set of products and services, from innovative personal storage to solid state drives for the enterprise.” Mr. Milligan added.

Western Digital is an American company best known for its external and portable hard drives, although it also manufactures electronic devices designed to store digital media, such as music, photos and movies.

Spread The News!

Tags: , , , , , ,


Related News

What's On Your Mind?