By Keri Algar
SYDNEY, NSW: WD will acquire Hitachi Global Storage in a cash and stock transaction valued at roughly $4.3 billion leaving WD with a more expansive digital storage range and greater capacity for research and development.
It will be business as usual though for both companies, who will continue operating under their respective brands. Both companies are listed on the New York Stock Exchange and the massive transaction is expected to be completed in the third quarter of this year.
The deal will leave WD with significantly more operating scale, global talent, a broader product line up and improved resources for future storage innovations, according to John Coyne, president and CEO of WD.
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“We believe this step will result in several key benefits: enhanced research and development capabilities, innovation and expansion of a rich product portfolio, comprehensive market coverage and scale that will enhance our cost structure and ability to compete in a dynamic marketplace,” said Coyne in a statement.
WD told Current.com.au that it was a great time in the industry for this transaction to take place because digital content continues to grow, applications continue to proliferate, and internet bandwidth is expanding creating demand for digital storage of content, both locally and in the cloud. In Australia WD offers a broad range of internal, external and portable hard drives as well as media players and multimedia drives.
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