US$4.3b deal
Source: Agencies |
March 8, 2011, Tuesday
|
Print Edition
Print Edition
HARD drive maker Western Digital Corp is buying Hitachi Global Storage Technologies for US$4.3 billion in cash and stock.
Western Digital yesterday said the deal includes US$3.5 billion in cash, plus 25 million of its common shares. The stock is valued at US$750 million based on the firm's Friday closing stock price of US$30.01.
Both companies' boards have approved the acquisition, which is expected to close in the third quarter. Western Digital said it plans to pay for the buyout with existing cash and about US$2.5 billion in total debt.
Western Digital is best known for its external and portable hard drives, but also makes products for the home designed to store digital media, such as music, photos and movies.
On completion of the transaction, Hitachi Global Storage's parent, Hitachi Ltd, will own about 10 percent of Western Digital's outstanding shares. Two of the company's executives will also join Western Digital's board.
Japan-based Hitachi Ltd manufactures a huge range of products from nuclear power plants to rice cookers.
Western Digital yesterday said the deal includes US$3.5 billion in cash, plus 25 million of its common shares. The stock is valued at US$750 million based on the firm's Friday closing stock price of US$30.01.
Both companies' boards have approved the acquisition, which is expected to close in the third quarter. Western Digital said it plans to pay for the buyout with existing cash and about US$2.5 billion in total debt.
Western Digital is best known for its external and portable hard drives, but also makes products for the home designed to store digital media, such as music, photos and movies.
On completion of the transaction, Hitachi Global Storage's parent, Hitachi Ltd, will own about 10 percent of Western Digital's outstanding shares. Two of the company's executives will also join Western Digital's board.
Japan-based Hitachi Ltd manufactures a huge range of products from nuclear power plants to rice cookers.
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