Tuesday, March 20, 2012

Western Digital buys Hitachi Global Storage Technologies

The acquisition was made by an amount close to U $ S3.900 million in cash and 25 million shares of common stock WDC.

Western Digital Corp. announced it has completed the acquisition of Viviti Technologies Ltd. (formerly Hitachi Global Storage Technologies) for U $ S 3,900 million in cash and 25 million shares of common stock WDC, valued at about $ S900 million. So, Hitachi Ltd. He becomes the owner of about 10% of the outstanding shares of Western Digital, which gives the right to appoint two representatives to the board.

The new Western Digital WD Technologies will operate and HGST as wholly owned subsidiaries and will be led by John Coyne as CEO, Steve Milligan as president and COO Tim Leyden and Wolfgang Nickl as CFO.

"The completion of this aadquisiciĆ³n truly momentous event represents the 42-year history of the company," said Coyne, who also added that "With the ownership of two successful companies and the best talent available in the industry, we expect great things As we build the new WD to become the provider worldwide leader in storage solutions with the most comprehensive technological capabilities, the broadest portfolio of products and the best execution of its kind in the industry. "

The CEO clarified that the two subsidiaries will compete in the market with different brands and product lines, but they share "common values ​​of customer satisfaction and value creation and growth and consistent profitability."

For John Ryding, vice president of research at the Division and Semiconductor Drives at IDC "Mobility, cloud infrastructure, social businesses and large analytical data sources are stimulating demand for digital content in new formats and new segments market, creating the need for an increasing array of storage products and technology resources for storage solution providers. "

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