Last checked at 19 Apr 2011 10:02
Strategic Alliance with Seagate Technology
On April 19, 2011, Samsung Electronics Co., Ltd. and Seagate Technology plc announced that they entered into an agreement to expand their strategic relationship.
Details of the agreement
1. Main objective: To strengthen competitiveness through strategic alliance
2. Major terms of the agreement:
·; Samsung Electronics will transfer assets related to its hard disk drive (HDD) operations to Seagate.
- Transfer price : $1.375 billion
- Method of payment : 50% with Seagate's ordinary shares (about 9.6% of its outstanding shares) and 50% in cash
※ Upon closing, Samsung will receive Seagate ordinary shares valued at $687.5 million (45.2 million shares, or approximately 9.6% ownership of Seagate, which is based on Seagate's 30-day volume weighted average stock price prior to signing), plus $687.5 million in cash.
·; Samsung Electronics and Seagate will strengthen their strategic relationship as follows.
- Extending and enhancing the existing patent cross-license agreement between the companies
- The two companies will strengthen efforts to co-develop enterprise storage solutions
- Samsung Electronics will supply NAND to Seagate's solid state drive (SSD) products
- Seagate will supply hard disk drives to Samsung Electronics' PCs and notebooks
※ Samsung will have a right to designate a nominee to join Seagate's Board of
Directorsfollowing closing.
3. Others
·; Transfer of assets is planned within 2011, but the effective date is not decided yet since the agreement has to undergo related authorities' anti-trust investigation and approval procedure.