Western Digital has announced to takeover Hitachi Global Storage Technologies (Hitachi GST) for about $4.3 billion. The complete transaction will be split in cash and stock with cash taking $3.5 billion and $750 million by way of shares. The acquisition has been approved by board of directors of each company and is expected to complete the deal by Q3 2011.
With the takeover, WD expects to create a customer-focused storage company with large operating scale and superior product lineup.
“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 benefits¾enhanced 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 skills and contributions of both workforces were key considerations in assessing this compelling opportunity. 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.”