Samsung To Transfer HDD Operations Assets To Seagate

Seagate Technology and Samsung Electronics announced that they have entered into a definitive agreement under which Seagate and Samsung will expand and strengthen their strategic relationship.

Major elements of the agreement include:

• Samsung transferring assets related to its hard disk drive operations to Seagate;
• Extending and enhancing the existing patent cross-license agreement between the companies;
• A NAND flash memory supply agreement under which Samsung will provide Seagate with its products for use in Seagate's enterprise solid state drives (SSDs), solid state hybrid drives and other products;
• A disk drive supply agreement under which Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics;
• Expanded cooperation between the companies to co-develop enterprise storage solutions;
• Samsung receiving significant equity ownership in Seagate;
• A shareholder agreement under which an executive of Samsung will be nominated to join Seagate's Board of Directors

The combined value of these transactions and agreements is approximately $1.375 billion USD, which will be paid by Seagate to Samsung in the form of 50% stock and 50% cash.

In connection with its strategic alliance with Samsung, Seagate expects also to strengthen its relationship with TDK Corporation/SAE Magnetics (H.K.) Ltd. Together, these transactions and agreements broaden a strategic relationship between Seagate and Samsung that began with a joint development agreement announced in August 2010.

Source: Seagate Technology, Samsung Electronics

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