Seagate completes Samsung HDD business acquisition

Seagate Technology  has completed the acquisition of the hard disk drive (HDD) business of Samsung Electronics, after it recently received approval for the deal in Australia, China, and the European Commission.

Seagate said in April that it was acquiring the HDD business of Samsung Electronics for $1.4 billion in stock and cash.

Under the terms of the transaction, Seagate said it has gained parts of Samsung’s HDD business, such as Samsung’s M8 product line of high-capacity, 2.5-inch HDDs, and other assets, infrastructure and employees.

Samsung employees joining Seagate include a number of senior managers and design engineers from Samsung’s South Korea facility, who will develop small form-factor products for the mobile computing market, Seagate said.

N.Y. Park, senior vice president and general manager, will oversee Seagate’s product development activities in South Korea and serve as country manager of the local design center, reporting to Bob Whitmore, Seagate’s executive vice president and chief technology officer, it said.

In 2010, HDD shipments from both Seagate and Samsung added to 261.2 million units, giving the combined companies 40 percent of the HDD market, IHS iSuppli analyst Fang Zhang said in May in a blog post. Western Digital and Hitachi Global Storage Technologies still held the number one position with a 50 percent share.

The market shares are likely to change dramatically in this quarter and early next year after the Thailand floods halted production at the facilities of Western Digital in the country, though the supply chain to Seagate’s factories in the country was also affected.