Western Digital Acquires Hitachi GST, Strengthening Segment Leadership
Western Digital will acquire Hitachi Global Storage Technologies in a cash and stock transaction valued at approximately 4.3 billion US$.
The resulting company will retain the Western Digital name and remain headquartered in Irvine, California. John Coyne will remain chief executive officer of WD, Tim Leyden chief operating officer and Wolfgang Nickl chief financial officer. Steve Milligan, president and chief executive officer of Hitachi GST, will join WD at closing as president, reporting to John Coyne.
The acquisition pushes Seagate in the corner, strengthening WD market share position, in the hard disk segment, however as analysts lately stated, 50% of the hard disk market won’t exist in next five years, and it will probably disappear in the next 10 years.