Seagate and Samsung announced that they have entered into a definitive agreement under which they will significantly expand and strengthen their strategic relationship by further aligning their respective ownership, investments and key technologies. Major elements of the agreement include:
* Samsung combining its hard disk drive (HDD) operations into Seagate
* Extending and enhancing the existing patent cross-license agreement between the companies
* A NAND flash memory supply agreement under which Samsung will provide Seagate with its market-leading semiconductor products for use in Seagate’s enterprise solid state drives (SSDs), solid state hybrid drives and other products
* A disk drive supply agreement under which Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics
* Expanded cooperation between the companies to co-develop enterprise storage solutions
* Samsung receiving significant equity ownership in Seagate
* A shareholder agreement under which an executive of Samsung will be nominated to join Seagate’s Board of Directors
The combined value of these transactions and agreements is approximately $1.375 billion USD, which will be paid by Seagate to Samsung in the form of 50% stock and 50% cash.
These transactions and related strategic agreements will enable both companies to better align their current and future product development efforts and roadmaps, accelerate time-to-market for new products and position the companies to better address rapidly evolving opportunities in markets including, but not limited to, mobile computing, cloud computing and solid state storage.
Together, these transactions and agreements broaden a strategic relationship between Seagate and Samsung that began with a joint development agreement announced in August 2010.
* Samsung combining its hard disk drive (HDD) operations into Seagate
* Extending and enhancing the existing patent cross-license agreement between the companies
* A NAND flash memory supply agreement under which Samsung will provide Seagate with its market-leading semiconductor products for use in Seagate’s enterprise solid state drives (SSDs), solid state hybrid drives and other products
* A disk drive supply agreement under which Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics
* Expanded cooperation between the companies to co-develop enterprise storage solutions
* Samsung receiving significant equity ownership in Seagate
* A shareholder agreement under which an executive of Samsung will be nominated to join Seagate’s Board of Directors
The combined value of these transactions and agreements is approximately $1.375 billion USD, which will be paid by Seagate to Samsung in the form of 50% stock and 50% cash.
These transactions and related strategic agreements will enable both companies to better align their current and future product development efforts and roadmaps, accelerate time-to-market for new products and position the companies to better address rapidly evolving opportunities in markets including, but not limited to, mobile computing, cloud computing and solid state storage.
Together, these transactions and agreements broaden a strategic relationship between Seagate and Samsung that began with a joint development agreement announced in August 2010.
