Seagate completes acquisition of Samsung's HDD business

The deal recently got approval from China, Australia, and the European Commission

Seagate Technology said Tuesday it has completed the acquisition of the hard disk drive (HDD) business of Samsung Electronics, after it recently received approval for the deal in Australia, China, and the European Commission.

Seagate said in April that it was acquiring the HDD business of Samsung Electronics for US$1.4 billion in stock and cash.

Under the terms of the transaction, Seagate said it has gained parts of Samsung's HDD business, such as Samsung's M8 product line of high-capacity, 2.5-inch HDDs, and other assets, infrastructure and employees.

Samsung employees joining Seagate include a number of senior managers and design engineers from Samsung's South Korea facility, who will develop small form-factor products for the mobile computing market, Seagate said.

N.Y. Park, senior vice president and general manager, will oversee Seagate's product development activities in South Korea and serve as country manager of the local design center, reporting to Bob Whitmore, Seagate's executive vice president and chief technology officer, it said.

In 2010, HDD shipments from both Seagate and Samsung added to 261.2 million units, giving the combined companies 40 percent of the HDD market, IHS iSuppli analyst Fang Zhang said in May in a blog post. Western Digital and Hitachi Global Storage Technologies still held the number one position with a 50 percent share.

The market shares are likely to change dramatically in this quarter and early next year after the Thailand floods halted production at the facilities of Western Digital in the country, though the supply chain to Seagate's factories in the country was also affected.

The projected loss of shipments for Western Digital could prove a boon in the short term for Seagate Technology and boost the number two HDD player to the top after trailing Western Digital in total shipments for several quarters, IHS iSuppli said in November.

Western Digital said in March that it would buy Hitachi Global Storage Technologies for $4.3 billion in cash and stock. The acquisition is expected to close by March next year, as the company works to satisfy European Commission remedy provision, and obtains approvals from other regulatory authorities.

Seagate said it is retaining 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 (research and development). Some of these moves are likely to be linked to conditions imposed by China's Ministry of Commerce for approving the merger, including requiring Seagate to expand the production capacity of Samsung drives for six months, and selling Samsung's HDD products through an independent company.

The Australian Competition & Consumer Commission approved the acquisition last week.

Seagate and Samsung have also extended and enhanced their existing patent cross-license agreement, and have expanded cooperation to co-develop enterprise storage solutions.

Under the terms of the agreement in April, Seagate is supplying disk drives to Samsung for PCs, notebooks and consumer electronics devices, while Samsung is supplying semiconductor products for use in Seagate's enterprise solid state drives (SSDs), solid-state hybrid drives and other products.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesDriveshddstoragehitachi GSTSamsung Electronicswestern digitalMergers and acquisitionsSeagate Technology

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?