Seagate on Monday officially closed the deal to acquire the hard disk drive (HDD) business of Samsung for $1.4 billion, a transaction that was first announced in April 2011. Under terms of the agreement, Seagate gains select elements of Samsung's HDD division, including assets, infrastructure, and employees. Among the assets is Samsung's M8 product line of high-capacity, 2.5-inch HDDs.
"Together, Seagate and Samsung have aligned our current and future product development efforts and roadmaps in order to accelerate time-to-market efficiency for new products and position us to better address the increasing demands for storage," said Steve Luczo, Seagate chairman, president and CEO. "It is an exciting time in the industry with rapidly evolving opportunities in many markets including mobile computing, cloud computing, and solid state storage."
As part of the agreement, Seagate is supplying disk drives to Samsung for PCs, notebooks, and consumer electronics devices. In return, Samsung is supplying its semiconductor products for use in Seagate's enterprise solid state drives (SSDs), solid state hybrid drives, and other products. The two companies also extended and enhanced their existing patent cross-license agreement and ramped up cooperative efforts to co-develop enterprise storage solutions.