Hitachi, IBM Consummate HDD Marriage

Following many regulatory approvals, Hitachi successfully tucks away IBM's hard disk drive business for a shade over $2 billion.


You Can't Detect What You Can't See: Illuminating the Entire Kill Chain

On-Demand Webinar

Tokyo's Hitachi this week made good on its blockbuster play to acquire Armonk, N.Y.-based IBM's hard drive business for $2.05 billion.

As per the original agreement, inked in June, Hitachi paid 70 percent of the purchase price to IBM Tuesday -- the day of closing. Hitachi agreed to pay the remainder to IBM over the next three years.

The new company, to be based in San Jose, Calif., will go by the name of Hitachi Global Storage Technologies and will be managed by an independent team of executives from Hitachi and IBM's HDD operations. Corporate managing director of Hitachi Dr. Jun Naruse has been tapped as CEO for the new company, with IBM's Douglas Grose to serve as chief operating officer.

The companies said the new organization would employ about 24,000 -- 18,000 from IBM and 6,000 from Hitachi -- with major manufacturing operations at 11 locations around the world.

The business should give Hitachi considerable clout in the storage hardware sector. The deal passed muster nearly seven months after it was first announced, but only after clearing FTC regulatory approval last month.

Hitachi and IBM previously received antitrust approval for the proposed transaction from the European Commission, the Japan Fair Trade Commission, Brazil's Conselho Administrativo de Defesa Economica (CADE) and Taiwan's Fair Trade Commission.

0 Comments (click to add your comment)
Comment and Contribute


(Maximum characters: 1200). You have characters left.



IT Management Daily
Don't miss an article. Subscribe to our newsletter below.

By submitting your information, you agree that datamation.com may send you Datamation offers via email, phone and text message, as well as email offers about other products and services that Datamation believes may be of interest to you. Datamation will process your information in accordance with the Quinstreet Privacy Policy.