New York - Western Digital today announced it has entered into an agreement to purchase Hitachi Global Storage.
The cash and stock deal is valued at about $4.3 billion. Western Digital will pay Hitachi Ltd., the parent of Hitachi Global Storage, $3.5 billion in cash and $25 million in Western Digital stock. This will give Hitachi Ltd. a 10 percent stake in Western Digital when the transaction is completed.
The new company will retain the Western Digital name and remain headquartered in Irvine, Calif., with Western Digital CEO John Coyne at the helm.
Western Digital is the worldwide leader in hard-disk-drive unit shipments, with Hitachi Global Storage No. 3, according to iSuppli. Seagate is in second place.