Seagate Signs Deal with Samsung to Expand Business in China and Southeast Asia

By Rajani Baburajan April 25, 2011

Seagate Technology, hard disk drives and storage solutions provider, and Samsung Electronics, digital consumer electronics and information technology major, announced a $1.375 billion deal involving many transactions and agreements.

Seagate will pay $1.375 billion to Samsung in the form of 50 percent stock and 50 percent cash to buy Samsung’s hard disk drive (HDD) division.

The deal is expected to assist Seagate to significantly expand customer access in China and Southeast Asia. With the supply agreements, Seagate will secure an important source of NAND flash supply as the company expands its SSD and solid state hybrid product offerings. Seagate will become a significant supplier of disk drives to Samsung.

Both the companies signed a NAND flash memory supply agreement under which Samsung will provide Seagate with its semiconductor products for use in Seagate’s enterprise solid state drives (SSDs), solid state hybrid drives and other products.

They also signed a disk drive supply agreement under which Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics. They will expand cooperation between the companies to co-develop enterprise storage solutions.  

The main attraction of the deal is that Samsung would be receiving significant equity in Seagate. An executive of Samsung will be joining Seagate’s Board of Directors.

“With these agreements, we expect to achieve greater scale and deliver a broader range of innovative storage products and solutions to our customers, while facilitating our long-term relationship with Samsung,” said Steve Luczo, chairman, president and CEO of Seagate, in a statement.

These strategic decisions will enable both companies to better align their product development efforts and roadmaps, accelerate time-to-market for products. Seagate can also strengthen its relationship with TDK Corporation/SAE Magnetics.  

“Samsung looks forward to extending our existing strategic ties with Seagate, to deliver creative technology solutions for a broad diversity of consumer, business and industrial applications,” said Oh-hyun, Kwon, president of the semiconductor business of Samsung Electronics.

Recently, Seagate announced that Albert 'Rocky' Pimentel joined the company as executive vice president of worldwide sales and marketing. In his new role, Pimentel will lead the global team comprising Sales, Sales Operations, Product Line Management, Marketing and Retail.




Rajani Baburajan is a contributing editor for TechZone360. To read more of Rajani's articles, please visit her columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More

Blockchain in Space

By: Doug Mohney    4/10/2018

The fact is that everyone is putting a special spin upon blockchain this minute. Given that, it's no surprise a number of companies are discussing dis…

Read More