WD completes Hitachi's acquisition

Western Digital (WD) has completed the acquisition of Hitachi Global Storage Technologies (HGST), effective March 8, 2012, for $3.9 billion in cash, and 25 million shares of WDC common stock, counting $0.9 billion.

Hitachi now owns approximately 10 percent of WDC shares outstanding, and holds the right to designate two individuals to the board of directors of the company. The new WD will operate with WD Technologies (WD), and HGST as wholly owned subsidiaries.

''Similar to successful multi-brand models in other industries, the two subsidiaries will compete in the marketplace with separate brands and product lines while sharing common values of customer delight, value creation, consistent profitability and growth,'' said John Coyne.

The cash portion of the purchase price was financed by a $2.3 billion, five-year term loan, short-term financing under a $500 million revolving credit agreement, and existing company cash balances.