Feeds

Seagate poised to swallow LaCie, haul fattened bod into channel

Cali firm dives into deeper international waters

Build a business case: developing custom apps

Spinning disk supremo Seagate has nailed down an agreement from Paris-based external drive products manufacturer LaCie to snap it up, and LaCie is up for it – though the trade union and regulatory stuff is still being worked out.

If the transaction completes, Seagate will be able to round out its mainstream consumer storage products portfolio with LaCie's branded and designer consumer storage, network-attached storage hardware and software products.

It reckons: "The combination would accelerate Seagate’s growth strategy in the expanding consumer storage market, particularly in Europe and Japan, and add strong engineering and software development capabilities, as well as relationships with several key retailers."

It would also help Seagate compete against the Western Digital/Hitachi GST consumer drive products portfolio.

Seagate will gain controlling interest in LaCie with an offer of €4.05/share for 64.5 per cent of the shares – namely, those held by LaCie's chairman and CEO Philippe Spruch and his affiliate. But it still has to head off any concerns about antitrust from regulators on both sides of the ocean.

Seagate's release says:

Following receipt of governmental approvals and the close of this transaction, Seagate would commence an all-cash simplified tender offer (followed as the case may be by a squeeze-out procedure) to acquire the remaining outstanding shares in accordance with the General Regulation of the French Autorité des Marchés Financiers (AMF).

There is a conditional supplement of 3 per cent. The offer values LaCie around €146m ($186m) total equity value, including acquired net cash of approximately €49m ($65m), as of 31 March this year. The €4.05 per share price represents a premium of 29 per cent to LaCie’s average closing stock price over the 30 trading days ended on 22 May.

If the transaction completes, Philippe Spruch would join Seagate and head up its consumer storage products organisation. Patrick Connolly, the VP and general manager of Seagate’s retail group, would then report to him, as would Pierre van der Elst, the deputy general manager of LaCie.

Seagate chairman and CEO Steve Luczo said: "LaCie has built an exceptional consumer brand by delivering exciting and innovative high-end products for many years. This transaction would bring a highly complementary set of capabilities to Seagate, significantly expand our consumer product offerings, add a premium-branded direct-attached storage line, strengthen our network-attached storage business line and enhance our capabilities in software development.”

Seagate can expand LaCie's channel. Spruch said: "Consumer demand for high-quality branded storage solutions continues to grow. We are excited about the potential for this combination to benefit customers and employees by creating significant scale and opening up new markets. We look forward to making the resources of a much larger company available to our customers around the world."

The transaction is complicated. The initial share purchase transaction is expected to close in the third calendar quarter of 2012 pending completion of the relevant governmental reviews. Seagate would then make a tender offer for the remaining outstanding shares of LaCie, subject to a clearance decision from the AMF. That tender offer is expected to also complete in the third calendar quarter of 2012. Seagate says "the transaction is subject to regulatory approval in the United States (antitrust filing), France (approval of foreign investments by the Ministry of Finance) and other jurisdictions (antitrust filing in Germany) and to other customary closing conditions."

It looks a good deal, with Seagate getting the LaCie boss man and the company. It should put some fire into its consumer disk drive product sales and give it a leg up into the smallish NAS market. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.