Hitachi GST

The Hitachi Global Storage Technologies company develops hard drives and solid state drives of a corporate class for storage of especially valuable information. The Hitachi GST company delivers drives for many segments of the market, including for the enterprises, desktop and mobile computers and consumer electronics. Hitachi GST was founded in 2003, the American headquarters is located in San Jose, California.

History

2011: Acquisition of Western Digital

In March, 2011 Western Digital and Hitachi announced signing of the final agreement providing acquisition of Hitachi Global Storage Technologies company (Hitachi GST) by WD corporation — completely controlled division of Hitachi, Ltd. Total amount of this transaction paid both money, and actions, is about 4.3 bln. dollars. As a result of this consolidation the manufacturing company of means of data storage aimed at satisfaction of customers needs and having very wide scale of activity, a global team of highly-skilled employees and the most numerous product family in the industry created on the basis of considerable and various baggage of engineering developments will be created.

Under the terms of this agreement of WD will purchase Hitachi GST for 3.5 bln. dollars in cash and 25 million ordinary shares WD which cost is 750 mln. dollars at the rate of the cost of one stock WD in 30.01 dollars as of the moment of closing of exchange biddings on March 4, 2011. Companies Hitachi, Ltd. about ten percent of shares of Western Digital which is in circulation after issue will belong. Besides, upon completion of the transaction two representatives of Hitachi will be a part of Board of Directors of WD. This transaction was approved by Boards of Directors of both companies and should come to the end in the third quarter 2011 calendar year on performance of a number of formalities, normal for similar cases, in particular, of obtaining permissions from regulating authorities. WD is going to pay acquisition with both own money, and borrowed funds of about 2.5 bln. dollars.

According to the forecast of WD this transaction will allow to raise without delay the indicator of earnings per share calculated without requirements of GAAP, without the expense accounting, connected with acquisition, payments in connection with restructuring and depreciation of intangible assets.

The united company will save the name of Western Digital and head office in the city of Irvayn, State of California. John Coyne will remain the CEO of WD, Tim Leyden — the chief executive, and Wolfgang Nickl — the chief financial officer. Steve Milligan, the president and the CEO of Hitachi GST, upon completion of the transaction will hold a post of the president of WD under the command of John Coyne.