|Seagate Acquired Samsung Electronics for $1.4 billion|
Seagate Technology, which is one of the most renowned manufacturer of hard drives in the market, on Tuesday revealed that the company has acquired the hard drive business of Samsung Electronics for $1.4 billion.
Seagate, about the acquisition of Samsung Electronics said that the merging between the companies is both a talent and product acquisition. The agreement between the merger and the merged gives Seagate select elements of Samsung’s hard drive business, which also includes Samsung’s high-capacity M8 hard drives and semiconductors used to make solid-state drives.
Few of the senior managers and design engineers from Samsung Electronics will be joining Seagate. “It is an exciting time in the industry with rapidly evolving opportunities in many markets, including mobile computing, cloud computing and solid state storage,” said Stephen J. Luczo, Seagate’s chief executive.
The acquisition of Samsung Electronics by Seagate will also throw light on the employees and to others who were out down due to Thailand floods and the devastation caused by the floods to the factories which produced hard drive parts.
It is also a known fact that world's disk drives were not able to be built as Thailand is underwater, but as Samsung is a small production house, it was not affected by it. So this might be one of the major reason behind Seagate acquiring Samsung Electronics.
The vital factor and the advantage of Seagate acquiring Samsung Electronics will be flash memory (also known as NAND), as most of the MacBook Air and ultrabooks made by PC makers like Hewlett-Packard, use flash memory for storage.