Seagate completes acquisition of Samsung HDD manufacturing unit

Seagate completed the acquisition of Samsung’s hard drive business – a USD $1.4 billion transaction, announced in a press release from Seagate.

Under the terms of the transaction, Seagate has gained select elements of Samsung’s HDD business, including assets, infrastructure and employees that enable Seagate to drive scale and innovation. These assets include Samsung’s leading 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.

The deal was announced in April 2011 and included other agreements between the two companies. Seagate provides the hard drives for Samsung’s devices while Samsung supplies Seagate its semiconductor products for use in solid state drives or hybrid drives.

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. Customers can find more information at www.seagate.com/samsung.

Back in 2006, Seagate acquired Maxtor for $1.9 billion in stock and continues to run it as a subsidiary.



Categories : Business
Posted by Jason Hamilton | December 20, 2011  |  No Comment

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