Seagate And Samsung Announce Strategic Agreement

Seagate is one of the biggest names in HDD storage for the consumer and enterprise user. Samsung is very big in the production of NAND flash that is used in SSD drives. The two companies have today announced a new strategic partnership that will have them combining some of their operations.

Samsung will combine its HDD operations into Seagate and the two firms will extensively cross-license technology. In exchange, Samsung is getting a significant ownership stake in Seagate of about 9.6%. The deal is costing Seagate $1.375 billion. Half of that amount is being paid with stock and the other half in cash.

Samsung will provide Seagate with NAND flash for use in SSD products, hybrid drives and other gear under the agreement. The two firms expect the deal to close by the end of 2011. Samsung will also get to designate a nominee to join the Seagate board of directors.

[via Seagate]