Western Digital (WD) have confirmed that they have completed all the procedures, and have finally acquired Hitachi. This acquisition has put WD at the top spot as the largest manufacturer of HDDs in the world, reports Verge. Although Hitachi wasn’t the first choice, as WD intended buying Seagate. The WD-Seagate deal maybe didn’t work out for good. The new merger is complete and inked in a deal worth $3.9 billion in cash and $25 million worth of shares, which were reportedly valued at 0.9 billion, early this week. The deal is also said to be funded by a $2.5 billion five year loan.
Reportedly, this move by Hitachi has brought it 10 percent stake in WD and the ability to appoint two members to the board of directors. Moreover, Hitachi has been struggling with the business for sometime now. For WD, it has enabled it to surpass Seagate, its competitor and take the first place in HDD manufacturing in the world. After this merger, WD stocks have risen by 16 per cent to surpass Seagate. Besides, the company has also been fighting out other players who’ve entered the digital market.
The hard drive market hasn’t been at its best lately, with rising prices, due to the recent Thailand floods, which almost wiped out several factories. But manufacturers have been trying to put their best foot forward, despite all odds. We saw Hitachi released what it called the world’s slimmest hard drive, last month, which is a 2.5-inch notebook hard drive dubbed Travelstar Z7K500. However, there is no word on it making to the Indian store shelves. We also saw Hitachi Global Storage Technologies declare the Ultrastar enterprise-class solid state drive the industry’s first to use 25-nanometer (nm) single-level cell (SLC) NAND flash.
This new WD and Hitachi merger may just work for best interests of both companies.
Published Date: Mar 10, 2012 01:46 pm | Updated Date: Mar 10, 2012 01:46 pm