HGST, a Western Digital Corp. subsidiary, has announced an agreement to buy sTec, an enterprise solid-state drive (SSD) vendor, for about US$340m in cash.
The acquisition augments HGST’s existing solid-state storage capabilities to boost its play in the rapidly growing market for enterprise SSDs. HGST said it will stay committed to its joint development program with Intel Corp. for SAS-based SSD products.
The buyer said sTec had strong engineering talent and intellectual property that will complement its technical expertise and capabilities. HGST also vowed to continue supporting existing sTec products.
Steve Milligan, president and CEO of Western Digital, said, “Solid state storage in the enterprise will play an increasingly strategic role in the future of Western Digital. This acquisition is one more building block in our strategy to capitalize on the dramatic changes within the storage industry by investing in SSDs and other high-growth storage products.”
Mark Moshayedi, president and CEO of sTec, said the merger will enable the company's engineering team and IP to continue to make a significant contribution to the enterprise SSD space.
The board of directors of sTec has unanimously approved the merger agreement and has resolved to recommend that sTec shareholders approve the transaction at an upcoming meeting. If approved, the acquisition is expected to close in the third or fourth quarter of 2013.