Hard drive giant Western Digital is set to buy Hitachi Global Storage for a cool US$4.3bn. The company will be paying US$3.5bn in cash along with US$750m worth of Western Digital shares.
This means Hitachi, Ltd. will then own approximately 10pc of Western Digital shares. And 2 of Hitachi’s representatives will be added to WD’s board of directors.
The companies say the proposed combination will result in a customer-focused storage company, with significant operating scale, strong global talent and the industry’s broadest product lineup backed by a rich technology portfolio.
Based in Irving, California Western Digital was founded in 1970 by Alvin B. Phillips as General Digital. Since then it has gone on to become the 2nd largest hard drive manufacturer in the world, next to Seagate.