Western Digital to Acquire sTec for US$34 Million
Western Digital has just announced its plans to acquire sTec for US$34 million. sTec was an early leader in the enterprise solid state drive industry. This acquisition is expected to augment the existing solid state storage business of HGST, a Western Digital company.
sTec is a company based in California, United States, and besides manufacturing enterprise SSDs, its products involve technologies like flash and DRAM memory, PCIe and embedded SSDs, flash storage, and caching software. In addition, Mr. Steve Milligan who is Western Digital’s President and Chief Executive said he expects enterprise SSDs to play an increasingly strategic role in the future of the company. The acquisition is expected to be closed by the third or fourth quarter of the year.
"This acquisition demonstrates HGST's ongoing commitment to the rapidly growing enterprise SSD segment, where we already have a successful product line," said Mike Cordano, president, HGST. "We are excited to welcome such a talented team of professionals to HGST, where their inventive spirit will be embraced and encouraged."
In 2011, Hitachi GST was acquired by Western Digital in a cash and stock transaction valued at approximately US$4.3 billion. The company was renamed as HGST subsequently. For more information, please refer to the official press statement from Western Digital here.