Monday, March 7, 2011

Western Digital To Acquire Hitachi Global Storage For $4.3B

Irvine-based disk drive maker Western Digital and Hitachi Ltd. said this morning that Western Digital is buying Hitachi Global Storage Technologies, Hitachi's disk drive and storage arm, for approximately $4.3 billion. The deal is a combination of $3.5 billion in cash, plus 25 million shares of WD common stock valued at $750M. As part of the deal, Hitachi Ltd. will own ten percent of WD, and add two representatives to Hitachi's board. The deal would combine two of the biggest manufacturers of disk drives on the planet. The two companies said they will retain Western Digital's name, and remain headquartered in Irvine. John Coyne will remain as CEO, with Steve Milligan, President and CEO of Hitachi GST, becoming President of WD as part of the acquisition.