Western Digital to Acquire Hitachi Global Storage Technologies for $4.3B

Western Digital WDC and Hitachi, Ltd. HIT announced today that they have entered into a definitive agreement whereby WD will acquire Hitachi Global Storage Technologies, a wholly-owned subsidiary of Hitachi, Ltd., in a cash and stock transaction valued at approximately $4.3 billion.

Under the terms of the agreement, WD will acquire Hitachi GST for $3.5 billion in cash and 25 million WD common shares valued at $750 million, based on a WD closing stock price of $30.01 as of March 4, 2011. Hitachi, Ltd. will own approximately ten percent of Western Digital shares outstanding after issuance of the shares and two representatives of Hitachi will be added to the WD board of directors at closing.