Feeds

Hitachi pins $2bn price tag to IBM HDD unit

Crossing Ts

  • alert
  • submit to reddit
ComputerWire: IT Industry Intelligence

Hitachi Ltd and IBM Corp have crossed the Ts and dotted the Is on the agreement for Hitachi to take over IBM's hard disk drive business, originally announced in April. The price tag is $2.05bn, somewhat higher than had originally been estimated by company watchers.

Under the terms of the deal, ownership of the HDD unit will be transferred to a new company, which will be 70% owned by Hitachi. The Tokyo-based firm will gradually take control over more of this subsidiary, making a series of fixed payments to IBM, until it becomes wholly owned three years from now.

Staff from both companies are being transferred to the new San Jose, California-based venture, which will be headed by Jun Naruse, currently Corporate Managing Director of Hitachi, and the chief operating officer will be Douglas Grose, currently general manager of IBM's Storage Technology Division.

Hitachi will select the new company's board of directors, and IBM will not be involved in its operations. The company will have about 24,000 employees, 18,000 from IBM and 6,000 from Hitachi, with manufacturing facilities at 11 locations, and is expected to bring in sales of $5bn next year.

© ComputerWire. All rights reserved.

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.