Samsung is, as we said yesterday, getting rid of its HDD operations in a sense – folding them into Seagate. There is also a NAND flash memory supply agreement, so Seagate will gets its chips from Samsung to bung into its SSDs and other products.
Seagate will also be providing disk drives to Samsung for PCs, notebooks and other consumer electronics. Both will work together to take on storage in the enterprise.
From the deal, Samsung gets to put one of its top execs on Seagate’s board of directors and receives “significant equity ownership in Seagate”.
The transactions ring in at $1.375 billion, paid by Seagate to Samsung for the pleasure – 50 percent stock and 50 percent cash.
Western Digital recently saw a deal with Hitachi Global Storage reach $4.3 billion.