That’s right, on Monday Western Digital told media outlets that they were buying Hitachi Global Storage Technologies for the equivalent of $4.3 billion. There were different things that comprised the entire deal which included a combination of $3.5 billion in cash with the addition of shares in the total amount of $50 million. Full terms of the deal included Western Digital’s name remaining the same for the company and Hitachi GST CEO Steve Milligan joining Western Digital as President.
CEO of Western Digital John Coyne argued to media sources that the move was primarily for scale. Western Digital and Hitachi Global Storage Technologies would form a larger competitor company and would also have the advantage of better research as well as a wider range of products as Hitachi has focused primarily on fields like drivers for set-top boxes and a greater focus on mobile hard drives.
This move is an attempt by Western Digital to hedge their position and compete against a market that gets increasingly tougher each day. Hitachi has suffered with reduced influence whereas Western Digital has been battling it out with fellow American rival company Seagate. Western Digital’s acquisition of Hitachi GST gives the company a improved position in the competition.
Source: Electronista – Western Digital to snap up Hitachi GTS for $4.3 billion