about Seagate taking over Samsung have now been confirmed, as the two firms have just announced a deal that will see Seagate absorbing Samsung’s hard disk operations.
The two storage giants claim the deal is designed to enable Seagate to ’achieve greater scale and the companies to deliver a broader range of innovative storage products and solutions to its customers.’
They also pointed out that this deal is simply an extension of an existing strategic relationship, which the two companies entered into in August 2010.
In return for handing over its hard disk business, Samsung will receive a considerable sum of $1.375 billion, which will be made up of 50 per cent stock and 50 per cent cash. This means that Samsung will come out of the deal holding a stake of just under 10 per cent in Seagate.
Samsung will also benefit from an agreement to supply Seagate with NAND flash memory for its range of enterprise SSDs and solid state hybrid drives. To cement the relationship between the two companies further, Samsung will also be able to appoint an executive to Seagate’s board of directors.
The announcement states that the deal is expected to be done and dusted by the end of 2011 and shouldn’t lead to any significant number of layoffs or facility closures. The two companies don't expect any significant regulatory concerns either.
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