Seagate Acquires Samsung’s Hard Drive Business For $1.4 Billion
Hard drive company Seagate Technology has completed the acquisition of Samsung’s hard drive business for $1.4 billion. The acquisition was first announced this past April. The merger was both for talent and products. Now Seagate owns Samsung’s high-capacity M8 hard drives and semiconducts for making SSDs. Some of Samsung’s senior managers will be joining Seagate.
Seagate CEO Stephen J. Luczo said that Seagate and Samsung had aligned their product development to get new products out faster. Samsung’s hard drive division specialized in building flash memory known as NAND, which will be beneficial for Seagate. Laptops like the MacBook Air and ultrabooks rely on flash memory for storage.
The hard drive industry as a whole suffered when Thailand was hit with harsh floods. The floods destroyed factories where hard drive parts are built.
[NYT]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry