Seagate buying Samsung's hard-disk drive business in $1.4-billion deal
Seagate is buying Samsung's hard disk-drive business in an agreement worth about $1.4 billion in cash and stock.
Samsung will get 45.2 million Seagate shares, or a 9.6% stake, worth about $687.5 million as part of the deal, the two companies said in a statement on Tuesday.
Seagate will supply Samsung with hard drives for computers and consumer electronics and Samsung will supply Seagate with flash memory chips, and the two companies will extend a cross-licensing patent agreement in a strategic partnership as part of the terms of the sale.
Another element of the deal calls for a Samsung executive to be nominated to join Seagate's board of directors after the deal closes, which is expected to take place by the end of the year after approval from U.S. and international regulators.
The move follows an agreement by Western Digital, the largest hard-drive maker, to buy Hitachi's storage business for $4.3 billion last month.
-- Nathan Olivarez-Giles
Photo: A Samsung Electronics hard-disk-drive Credit: Truth Leem/Reuters