Seagate today announced that it has agreed to buy Samsung’s computer hard-disk drive business for $1.38 billion in cash and stock options.
Under the terms of the agreement, Samsung will provide NAND flash memory to Seagate for use in solid-state drives (SSDs) and hybrid drives while Seagate will provide disk drives to Samsung for use in personal computers, notebooks and consumer electronics. Both the two companies have agreed to extend and enhance an existing patent cross-license agreement.
The deal is expected to close the gap between Seagate and Western Digital as Seagate will gain huge marketshare in China and South East Asia.
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