Western Digital and sTec have recently announced that they have entered into a definitive merger agreement wherein sTec will be acquired by HGST, a subsidiary of Western Digital. sTec will be purchased for approximately $340 million in cash.
HGST's existing solid-state storage capabilities are likely to be enhanced by the merger, accelerating its ability to expand its participation in the rapidly growing area of enterprise solid state drives. HGST will continue to support existing sTec products and employ the resources of sTec to complement its own technical expertise and capabilities.
The board of directors of sTec unanimously approved the merger agreement and has resolved to recommend that its shareholders approve the merger agreement and merger as well. sTec president and CEO, Mark Moshayedi, also expresses his support of the merger, saying, "This merger will enable our world-class engineering team and IP to continue to make a significant contribution to the high-performance enterprise SSD space that has long been sTec's focus."
The closing of the acquisition is expected to occur in the third or fourth quarter of 2013.
For the complete press release, click here.
