Western Digital Completes Acquisition of Hitachi Technologies

By |

Western Digital Completes Acquisition of Hitachi Technologies


Western-Digital-Acquires-Hitachi.jpgWestern Digital (WD) just announced that it has completed its acquisition of Viviti Technologies Ltd. (formerly Hitachi Global Storage Technologies), effective March 8, 2012, for $3.9 billion in cash and 25 million shares of WDC common stock valued at approximately $900 million. Hitachi now owns approximately 10 percent of WD shares outstanding, and it has the right to designate two individuals to the board of directors of WD.

Additional Resources
• Read more industry trade news from HomeTheaterReview.com.
• See a story about Savant acquiring LiteTouch.
• Read a review of WD's MyBook Live 1 TB Networked Drive.

The new WD will operate with WD Technologies (WD) and HGST as wholly owned subsidiaries. Aggregated revenues of the two companies in 2011 were $15 billion. As chief executive officer of WD, John Coyne heads up the new office of the CEO, with Steve Milligan as president, Tim Leyden as chief operating officer and Wolfgang Nickl as chief financial officer.

"The completion of this acquisition is a truly momentous event in the 42-year history of our company," said Coyne. "With ownership of two successful companies and the best talent available in the industry, we expect to accomplish great things as we build the new WD to be the world's leading storage solutions provider with the industry's deepest technology capability, broadest product portfolio and best-in-class execution. Similar to successful multi-brand models in other industries, the two subsidiaries will compete in the marketplace with separate brands and product lines while sharing common values of customer delight, value creation, consistent profitability and growth."

The cash portion of the purchase price was financed by a $2.3 billion, five-year term loan, short-term financing under a $500 million revolving credit agreement and existing company cash balances. The company expects the transaction to be immediately accretive to earnings per share on a non-GAAP basis, excluding acquisition-related expenses, restructuring charges and amortization of intangibles. In addition, the company expects to maintain a positive net cash position.
  • Comment on this article

Post a Comment
comments powered by Disqus

Latest Industry Trade News

Mar 04
Would You Rather Have Big 4K or Smaller 8K? During my workday I talk with all sorts of people from every corner of the specialty audio/video industry. Public relations...
Would You Rather Have Big 4K or Smaller 8K?

Mar 01
Mohu Ups the Ante on Antenna Amplification with FirstStage The cord-cutting trend doesn't look to be slowing down anytime soon, but as more and more consumers opt for...
Mohu Ups the Ante on Antenna Amplification with FirstStage

Feb 19
Samsung Pulling the Plug on UHD Blu-ray This news comes to us rather circuitously. Our friends at The Digital Bits are reporting that, according to Forbes, Samsung...
Samsung Pulling the Plug on UHD Blu-ray

Feb 11
How Will a Potential 2019 Real Estate Recession Affect Specialty A/V? Those of us who've owned homes over the past decade have little to complain about in terms of our overall...
How Will a Potential 2019 Real Estate Recession Affect Specialty A/V?

Feb 04
Inventory and Experience Are the Only Way to Compete with Amazon Right before Christmas, we had a rare power outage here at my house. Thankfully my equipment racks are installed with...
Inventory and Experience Are the Only Way to Compete with Amazon