Seagate announced that the company has officially acquired Samsung's hard drive business today, including all of its assets, employees, and infrastructure. The transaction includes Samsung's popular high-capacity 2.5-inch M8 hard drives and a number of senior managers and design engineers from Samsung's operations base in Korea. Going forward, these employees will be working on developing notebook hard drives with slim form factors for Seagate.
The transaction was first announced last April, but at its closing today it officially goes into effect, along with a few other agreements between the two companies. Seagate is now supplying more storage drives in Samsung PCs and notebooks, and Samsung is now supplying its semiconductor products for use in solid state drives, hybrid drives, and other products. Furthermore, the companies have agreed upon extending the use of the already-existing cross-license agreements for patents and co-developing other storage solutions in the future.
In the dawn of the transaction, Seagate hopes to substantially expand upon the Chinese market and customer base, as well as its brand in Southeast Asia, Brazil, Germany, and the Russian Federation.
The total value of the transaction is approximated at $1.4 billion, which includes over 45 million Seagate Ordinary Shares and the remaining settled cash balance. Seagate notes that the company does not expect to see any significant restructure costs.
Samsung SpinPoint M8 hard drive