Information storage solutions provider Western Digital announced Monday that it is acquiring Hitachi Global Storage Technologies (Hitachi GST) for $3.5 billion in cash and 25 million Western Digital common shares valued at $750 million.
According to a statement, the newly combined company will retain the Western Digital name and will be headquartered in Irvine, California. Hitachi GST President and CEO Steve Milligan will join Western Digital as president at the close of the acquisition, which is expected to occur during the third calendar quarter of 2011.
In addition, the transaction has been approved by the board of directors for each company and upon closing; two representatives from Hitachi will join the Western Digital board.
"This brings together two industry leaders with consistent track records of strong execution and industry outperformance," Milligan said in a statement. "Together we can provide customers worldwide with the industry's most compelling and diverse set of products and services, from innovative personal storage to solid state drives for the enterprise."