To strengthen its ability to meet anticipated future demand for hard drives
Western Digital has agreed to acquire magnetic media sputtering operations of Hoya and Hoya Magnetics for JPY22bn yen (approximately $235m) in an all-cash transaction, in a move to strengthen its ability to meet the anticipated growth in demand for hard drives in future.
The agreement includes a multi-year commitment for glass substrate supply related to these operations from Hoya, solidifying WD’s access to a key component for its 2.5-inch hard drive business and further enhancing the ongoing partnership between the companies.
As part of the agreement, WD is acquiring the facilities, equipment, intellectual property and working capital of Hoya’s media sputtering operations, based in Tuas, Singapore, where it expects to employ the entire current workforce. Certain related equipment at Hoya’s Nagasaka, Japan, research and development facilities is included.
John Coyne, president and chief executive officer of WD, said: This investment will enhance WD’s ability to support our customers growth. In addition to these assets, WD will also gain highly skilled and knowledgeable employees, valuable intellectual property and access to Singapore’s deep academic and technology resources. We expect a seamless transition with the integration of this well-run operation into WD, enabling immediate support of anticipated hard drive demand growth in 2010 and beyond.
The acquisition is expected to close in the current calendar quarter.