Seagate Acquiring Storage Products Company LaCie For Over $186 Million
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
Seagate has announced this morning that they are acquiring Paris-based consumer data storage company LaCie for at least $186 million. Seagate is buying a 64.5% stake in LaCie held by company chairman and CEO Philippe Spruch. Upon the completion of the transaction, Seagate will make an all-cash offer for the rest of LaCie’s shares. Seagate offered Spruch 4.05 Euros per share minus a potential adjustment depending on LaCie’s cash and debt positions at the close of the sale. Seagate said that the price could be increased by 3% if 95% of the shares and voting rights can be acquired within 6 months of closing of the first stage of the transaction. This would boost the price to 4.17 Euros per share.
“The transaction would combine two highly complementary product and technology portfolios, adding LaCie’s line of premium branded consumer storage solutions, network-attached storage solutions and software offerings to Seagate’s array of mainstream consumer storage products,” said Seagate in a statement. “The combination would accelerate Seagate’s growth strategy in the expanding consumer storage market, particularly in Europe and Japan, and add strong engineering and software development capabilities, as well as relationships with several key retailers.”