Scotts Valley, Calif. – Seagate Technology announced on
Tuesday that it will acquire the hard drive manufacturing unit of Korean
electronics firm Samsung, in a deal valued at $1.375 billion.

The deal will see
Samsung retain a 9.6% stake in Seagate, and provide flash memory products to
Seagate, while Seagate will supply hard drives for Samsung’s PCs, notebooks and
consumer electronics.

The companies will also collaborate to co-develop
enterprise storage solutions.

"We are pleased to strengthen our strategic
relationship with Samsung in a way that better aligns both companies around
technologies and products," said Steve Luczo, Seagate’s chairman,
president and CEO.

"With these agreements, we expect to achieve greater scale
and deliver a broader range of innovative storage products and solutions to our
customers, while facilitating our long-term relationship with Samsung."


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