Western Digital Agrees To Buy Hitachi GST For $4.3 Billion
Western Digital and Hitachi, Ltd. announced today that they have entered into a definitive agreement whereby WD will acquire Hitachi Global Storage Technologies (Hitachi GST), a wholly-owned subsidiary of Hitachi, Ltd., in a cash and stock transaction valued at approximately $4.3 billion. The proposed combination will result in a customer-focused storage company, with significant operating scale, strong global talent and the industrys broadest product lineup backed by a rich technology portfolio. Hitachi will own about 10% of Western Digital’s shares after the deal closes. Two representatives of Hitachi will be added to Western Digital’s board. The transaction is expected to close in the third quarter.
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 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. 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.”
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