Seagate Technology PLC has agreed to buy Samsung Electronics Co.’s hard drive business for $1.38 billion in cash and stock.
The companies said they don’t expect "significant layoffs, restructuring or facilities closures" but do expect a streamlining of operations.
Seoul, Korea-based Samsung will hold about a 10 percent equity ownership in Segate and an executive from that company will be nominated to Seagate’s board.
Flash-based drives are a major trend in the computing industry, offering advantages in performance, power consumption, ruggedness, and silent operation. However, the cost per gigabyte is considerably higher for flash storage. Samsung is one of the world’s largest manufacturers of flash memory.
The deal is expected to close by the end of 2011.