Further consolidating Winchester-based storage technologies, Irvine, CA based Western Digital, manufacturer of internal and external hard disk drives and other storage devices, has agreed to acquire San Jose, CA based Hitachi Global Storage Technologies in a deal valued at $4.3 billion, including $3.5 billion in cash and 25 million common shares, which has a current market value of $750 million. The deal gives Hitachi a 10 percent stake in Western Digital.
In addition to traditional hard disk drives and Solid State Drives for PCs and servers, Hitachi Global Storage Technologies is the parent company of Fabrik, Inc. a storage device manufacturer that acquired external storage device manufacturer G-Technology in January 2008. Fabrik was then acquired by Hitachi in April 2009. G-Technology is known for its G-RAID, G-Mobile, and G-Speed external hard drives targeted primarily at Apple’s Macintosh creative community. The external solutions are known for their well thought out and Macintosh-inspired industrial design and performance.

The G-Technology G-RAID external storage solution for Macintosh is now under Western Digital's tutelage.
Said Steve Milligan, president and CEO of Hitachi Global Storage Technologies said in a prepared statement, “This brings together two industry leaders with consistent track records of strong execution and industry outperformance.”
The deal enables Hitachi to focus on its other markets, including rail, healthcare, and biotechnology. Milligan will serve as president of Western Digital and Hitachi will gain two board seats. Four hard drive manufacturers are left to compete for the world’s storage market: Seagate, Western Digital, Samsung, and Toshiba.









