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Seagate Completes Acquisition of Samsung's Hard Disk Drive Business

Seagate Technology  announced the closing of the transaction to acquire the hard disk drive business of Samsung Electronics, after receiving approval for the deal in Australia, China, and the European Commission.


Under the terms of the transaction, Seagate has gained select elements of Samsung's HDD business, including assets, infrastructure and employees. These assets include Samsung's 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 Korea facility, 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's product development activities in Korea and serve as country manager of the Korea design center, reporting to Bob Whitmore, Seagate's executive vice president and CTO.

Together, Seagate and Samsung have aligned our current and future product development efforts and roadmaps to accelerate time-to-market efficiency for new products and position us to better address the increasing demands for storage," Seagate Chairman, President and Chief Executive Steve Luczo said.


"The strategic relationship will open new opportunities for the two companies by mutually complementing each other's creative technology solutions for a broad diversity of IT applications," said Oh-Hyun Kwon, vice chairman of Device Solutions of Samsung Electronics.

The transactions and agreements substantially expand Seagate's customer access in China, Southeast Asia, Brazil, Germany and the Russian Federation. 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.

The combined value of these transactions and agreements is approximately US $1.4 billion, consisting of 45,239,490 Seagate Ordinary Shares and the remaining balance settled in cash. In addition, Samsung will designate a nominee to join Seagate's Board of Directors.

20-Dec-2011 16:44:58
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