Still thinking about Hitachi Storage being bought by Western Digital, Well here’s one more.
Samsung made an announcement that their storage operations is now combined with Seagate.
As far as Press Release goes:
The deal consisting of 50% Seagate ordinary shares and 50% cash. Upon closing, Samsung will receive Seagate ordinary shares valued at $687.5 million (45.2 million shares, or approximately 9.6% ownership of Seagate, which is based on Seagate’s 30-day volume weighted average stock price prior to signing), plus $687.5 million in cash. Samsung will have a right to designate a nominee to join Seagate’s Board of Directors following closing. The deal is worth approximately $1.375 billion USD.
As far as the main points of the Agreement goes:
• Samsung combining its hard disk drive (HDD) operations into Seagate.
• Extending and enhancing the existing patent cross-license agreement between the companies.
• A NAND flash memory supply agreement under which Samsung will provide Seagate with its market-leading semiconductor products for use in Seagate’s enterprise solid state drives (SSDs), solid state hybrid drives and other products.
• A disk drive supply agreement under which Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics.
• Expanded cooperation between the companies to co-develop enterprise storage solutions.
• Samsung receiving significant equity ownership in Seagate.
• A shareholder agreement under which an executive of Samsung will be nominated to join Seagate’s Board of Directors.
Also, Seagate did say that they are looking forward to strengthen its relationship with TDK Corporation/SAE Magnetics (H.K.) Ltd.
Throughout the process, Morgan Stanley & Co. Incorporated played the role of Financial advisor, whereas Wilson Sonsini Goodrich & Rosati were the legal advisors.