Samsung Sells Hard Drive Business to Seagate for $1.375B

By Nathan Kirsch

It looks like the rumors yesterday were partly true! Seagate Technology and Samsung Electronics today announced that they have entered into a definitive agreement under which Seagate and Samsung will significantly expand and strengthen their strategic relationship by further aligning their respective ownership, investments and key technologies. The combined value of these transactions and agreements is approximately $1.375 billion USD, which will be paid by Seagate to Samsung in the form of 50% stock and 50% cash. Major elements of the agreement include:

  • Samsung combining its hard disk drive (HDD) operations into Seagate
  • Extending and enhancing the existing patent cross-license agreement between the companies
  • A NAND flash memory supply agreement under which Samsung will provide Seagate with its market-leading semiconductor products for use in Seagates enterprise solid state drives (SSDs), solid state hybrid drives and other products
  • A disk drive supply agreement under which Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics
  • Expanded cooperation between the companies to co-develop enterprise storage solutions

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We are pleased to strengthen our strategic relationship with Samsung in a way that better aligns both companies around technologies and products, said Steve Luczo, Seagate chairman, president and CEO. With these agreements, we expect to achieve greater scale and deliver a broader range of innovative storage products and solutions to our customers, while facilitating our long-term relationship with Samsung.

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