The biggest independent manufacturer of advanced disk recording heads is getting even bigger: Milpitas, California-based Read-Rite Corp signed a definitive agreement to acquire Sunward Technologies Inc in a share exchange transaction. Holders of San Diego-based Sunward will get 1.077 Read-Rite common shares for each Sunward, valuing the latter at an indicated $13 a share against […]
The biggest independent manufacturer of advanced disk recording heads is getting even bigger: Milpitas, California-based Read-Rite Corp signed a definitive agreement to acquire Sunward Technologies Inc in a share exchange transaction. Holders of San Diego-based Sunward will get 1.077 Read-Rite common shares for each Sunward, valuing the latter at an indicated $13 a share against a price in the market of $10.25, for a total of about $125m. Sunward will represent about 21% of the equity of the expanded company. We believe the addition of Sunward’s low-cost headstack design and manufacturing expertise complement well our own capabilities in Malaysia, Read-Rite Chairman Cyril Yansouni said. The combined company will have annualised turnover running at some $560m or so.
