{"id":18015,"date":"2011-12-21T13:12:33","date_gmt":"2011-12-21T03:12:33","guid":{"rendered":"http:\/\/power-up.space\/?p=18015"},"modified":"2011-12-21T13:12:33","modified_gmt":"2011-12-21T03:12:33","slug":"seagate-completes-acquisition-of-samsungs-hard-disk-drive-business","status":"publish","type":"post","link":"https:\/\/www.impulsegamer.com\/wordpress\/?p=18015","title":{"rendered":"Seagate completes acquisition of Samsung’s Hard Disk Drive Business"},"content":{"rendered":"
Strategic Agreement Including Extensive Supply and Cross-Licensing Arrangements Now Fully Operational<\/em><\/h5>\n

Sydney \u2013 December 20, 2011 \u2013<\/strong>Seagate Technology plc (NASDAQ: STX), a world leader in hard disk drives and storage solutions, today announced the closing of the transaction to acquire the hard disk drive (HDD) business of Samsung Electronics Co., Ltd., a world leader in digital consumer electronics and information technology.\u00a0
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\nUnder the terms of the transaction, Seagate has gained select elements of Samsung\u2019s HDD business, including assets, infrastructure and employees that enable Seagate to drive scale and innovation. These assets include Samsung\u2019s leading M8 product line of high-capacity, 2.5-inch HDDs. Samsung employees joining Seagate include a number of senior managers and design-engineering employees from Samsung’s Koreafacility, who will focus on development of small form-factor products for the mobile compute market. N.Y. Park, senior vice president and general manager, will oversee Seagate\u2019s product development activities in Korea and serve as country manager of the Korea design center, reporting to Bob Whitmore, Seagate\u2019s executive vice president and CTO.
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\n\u201cTogether, Seagate and Samsung have aligned our current and future product development efforts and roadmaps in order to accelerate time-to-market efficiency for new products and position us to better address the increasing demands for storage,\u201d said Steve Luczo, Seagate chairman, president and CEO. \u201cIt is an exciting time in the industry with rapidly evolving opportunities in many markets including mobile computing, cloud computing, and solid state storage.\u201d\u00a0
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\nThis transaction was announced in April 2011 along with a series of other agreements between Seagate and Samsung. Seagate is supplying disk drives to Samsung for PCs, notebooks and consumer electronics devices. Samsung is supplying its market-leading semiconductor products for use in Seagate\u2019s enterprise solid state drives (SSDs), solid-state hybrid drives and other products. The companies have also extended and enhanced their existing patent cross-license agreement and have expanded cooperation to co-develop enterprise storage solutions.\u00a0
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\n\u201cThe strategic relationship will open new opportunities for the two companies by mutually complementing each other\u2019s creative technology solutions for a broad diversity of IT applications,\u201d said Oh-Hyun Kwon, vice chairmanof Device Solutionsof Samsung Electronics.
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\nThe transactions and agreements substantially expand Seagate\u2019s customer access in China, Southeast Asia, Brazil, Germany and the Russian Federation. Seagate and Samsung also have been working together to ensure that customers continue to receive a high level of service, support and innovation, including activities to align the two companies\u2019 supply bases and delivery infrastructure. To ease the transition of products and technologies, Seagate will retain certain Samsung HDD products under the Samsung brand name for 12 months, and maintain or establish a number of independent operations including sales staff, key production lines and R&D. Customers can find more information at www.seagate.com\/samsung<\/a>.
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\nThe combined value of these transactions and agreements is approximately US $1.4billion, consisting of 45,239,490 Seagate Ordinary Shares and the remaining balance settled in cash.\u00a0 In addition, Samsung will designate a nominee to join Seagate\u2019s Board of Directors.
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\nSeagate does not presently expect significant restructuring costs and expects to achieve considerable reductions in overall operating expenses for the combined business while minimizing the integration costs. As previously stated, Seagate expects that the transactions and agreements will be meaningfully accretive to non-GAAP diluted earnings per share and cash flow in the first full year following the closing.\u00a0 Seagate will provide additional financial information for the combined company on its fiscal second quarter conference call in late January.<\/p>\n","protected":false},"excerpt":{"rendered":"

Strategic Agreement Including Extensive Supply and Cross-Licensing Arrangements Now Fully Operational Sydney \u2013 December 20, 2011 \u2013Seagate Technology plc (NASDAQ: STX), a world leader in hard disk drives and storage solutions, today announced the closing of the transaction to acquire the hard disk drive (HDD) business of Samsung Electronics Co., Ltd., a world leader in<\/p>\n

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