Samsung and Seagate this morning announced a "broad strategic alignment" which will see Seagate to take over the division of Samsung hard drive disk.
It was the month last than Western Digital acquired Hitachi hard drive for $ 4.3 billion, and now it appears that Samsung and Seagate are team to take on the newly reinforced WD. First rumored yesterday, purchase of 1.375 billion in division of Samsung hard drive Seagate was confirmed at the beginning today. Half price 1.375 billion is to be paid in cash, while remaining half will be paid in shares.
Apart from combining two companies hard drive divisions, the transaction extend also more license agreement reciprocal patent between the two. Other elements of the agreement include an agreement to supply flash memory NAND will see Samsung to provide semiconductor products Seagate for use in SSDs and hybrid SSDs; a drive agreement under which Seagate will provide hard disk drives of Samsung PC notebooks and consumer electronics. supply a partnership between the two to co-develop enterprise storage solutions. and a shareholders ' agreement which will see a Samsung Executive to join the Board of Directors of Seagate.
"We are pleased to enhance our strategic relationship with Samsung to better align the two companies technologies and products,", said Steve Luczo, Chairman, President and CEO of Seagate. "With these agreements, we expect to achieve a larger scale and to deliver a broader range of products and innovative storage solutions to our customers, while at facilitating our relationship in the long term with Samsung."
"Delivery of value to the market and consumers is the main objective of the broad agreement announced today.". "Samsung is pleased to extend our existing strategic relationship with Seagate, to provide creative technology for a wide variety of consumer, business and industrial applications," said Oh-hyun, Kwon, President of Samsung Electronics semiconductor company.
Of course, all this is subject to the usual formalities and regulatory approvals, therefore it is to be signed and sealed for months. Seagate, that the Pact is expected to be closed at the end of the year 2011.
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