Seagate Acquires WD for $16 Billion, New Company Named SeaWest Seagate Technology plc, a world leader in HDD drives and storage solutions, and Western Digital Corp. announced that they have entered into a definitive agreement whereby Seagate will acquire WD and its subsidiary HGST in a cash and stock transaction valued at approximately $16 billion, including approximately $4.7 billion million in cash on WDs balance sheet as of December 27, 2013. The proposed combination will result in a customer-focused storage company, with significant operating scale, strong global talent and the industrys broadest product lineup backed by a rich technology portfolio. Under the terms of the agreement, Seagate will acquire WD for $4.5 billion in cash and 122 million Seagates common shares valued at $6.8 billion, based on a Seagate closing stock price of $55.92 as of April 1, 2014. The transaction has been approved by the board of directors of each company and is expected to close during the first calendar quarter of 2015, subject to customary closing conditions, including regulatory approvals. Seagate expects the transaction to be immediately accretive to its earnings per share on a non-GAAP basis, excluding acquisition-related expenses, restructuring charges and amortization of intangibles. The resulting company will be named SeaWest LLC, retain the Western Digital and HGST brand names, and will be headquartered in George Town, Cayman Islands, and Cupertino, CA. Stephen J. Luczo will be chairman and CEO of SeaWest.
Posted on: Tue, 01 Apr 2014 21:43:52 +0000
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