Western Digital (WD) today announced the acquisition of the department of Japan’s Hitachi storage. The company will spend U.S. $ 4.3 billion to buy the division, called Global Storage Technologies, extending its R & D activities and its international presence.
“We think that this step will bring us many key benefits such as improved R & D (Research and Development), greater innovation and expansion of a portfolio full of products, as well as covering the relevant market and a scale that will improve our cost structure and our ability to compete in a dynamic market, “said John Coyne, WD president in a press release. “The skills and contributions of our two companies will be important in the success of this opportunity.”
The acquisition has already been confirmed by the authorities and, if everything will happen according to plan, Western Digital, the transaction will be completed by the end of the third quarter of 2011. The brand will remain universal Western Digital and the headquarters will remain in California. The two presidents will share the current executive power: the role of general manager John Coyne will be done, while the president to Steve Milligan, now head of Hitachi Global Storage.
We have no further information on the conditions of the acquisition, but the press release suggests that both companies will be able to maintain its identity.