Western Digital snaps up Hitachi's storage subsidiary
Western Digital is to acquire Hitachi Global Storage Technologies (a wholly-owned subsidiary of Hitachi) in a deal worth US$4.3 billion.
The result of the deal will see a customer-focused storage company "with significant operating scale, strong global talent and the industry's broadest product line-up backed by a rich technology portfolio”.
The new company will retain the Western Digital name and remain headquartered in Irvine, California.
John Coyne, President of Western Digital, explained, "We believe this step will result in several key benefits—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.”
Steve Milligan, CEO of Hitachi Global Storage Technologies, added, "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."