HGST, a subsidiary of Western Digital, has acquired sTec for $340 million, cash, to boost its position in enterprise class solid state storage.
Western Digital is confident that sTec intellectual property will be a valuable addition to HGST’s portfolio. Existing Stec products will continue to be supported by HGST.
HGST is already established in SSDs but wants to further capitalise on the growing enterprise SSD segment, pointing out that it is committed to continuing its joint development programme with Intel. Current and future SAS-based SSD products will continue to be in partnership with Intel, it said in a statement.
STec’s board of directors unanimously approved the agreement and is recommending the same to sTec shareholders. The acquisition was overseen by Wells Fargo Securities and Merrill Lynch, and is subject to the usual customary conditions – planned for completion in Q3 or Q4 of this year.
CEO at Western Digital, Steve Milligan, said that enterprise SSDs will play a crucial strategic role in the future of the company. In a statement, he said this acquisition is part of the company’s overall strategy to capitalise on changes in the storage industry “by investing in SSDs and other high-growth storage products”.
