April 19th, 2011 by Brian Beeler
Seagate Acquires Samsung Hard Drive Storage Operations
Seagate and Samsung are calling it a "Broad Strategic Alignment" but it more common terms, Samsung has more or less sold off their hard drive storage division to Seagate. The deal was rumored over the weekend by the Wall Street Journal, now it's official. As part of the deal Samsung will combine its hard drive operations with Seagate and will supply Seagate with NAND for Seagate's enterprise SSDs and hybrid hard drives and other products. Interestingly, the deal comes barely a month after Western Digital agreed to purchase Hitachi.
It's not all one way - the deal also includes a provision for Seagate to provide drives for Samsung PCs, notebooks and consumer electronics. There are also several other smaller cross-license agreements as part of the deal.
The combined value of these transactions and agreements is approximately $1.375 billion, which will be paid by Seagate to Samsung in the form of 50% stock (45.2 million shares, 9.6% ownership of Seagate) and 50% cash.