One of two pending multibillion dollar hard drive vendor acquisitions closed today when Seagate Technology wrapped up its $1.4 billion transaction with Samsung Electronics.
Seagate is acquiring Samsung’s M8 product line of 2.5-inch high capacity hard drives and will supply disk drives to Samsung for PCs, notebooks and consumer devices. Samsung will supply Seagate with chips for enterprise solidstate drives (SSDs). Seagate already uses those chips for its SSD and hybrid drives. Seagate is also acquiring employees from Samsung’s Korea design center.
The deal was first disclosed in April, but the companies had to clear regulatory hurdles. Even with the close of the deal, Seagate and Samsung face a long transition. Seagate will retain the Samsung brand for some of its hard drives for a year, and establish independent sales, product and development operations during that period.
The other blockbuster hard drive deal in the works is Western Digital’s proposed $4.3 billion takeover of Hitachi Global Storage Technology (HGST). The European Union last month gave its blessing to that deal, but ordered Western Digital to sell off some assets. The Western Digital-HGST acquisition is expected to close next March, one year after it was first announced.