Disclaimer
The opinions expressed herein are my own personal opinions and do not represent anyone else's view in any way, including those of my employer.
© Copyright 2011
The opinions expressed herein are my own personal opinions and do not represent anyone else's view in any way, including those of my employer.
© Copyright 2011
IRVINE, Calif. and SAN JOSE, Calif. – Mar. 7, 2011 – Western Digital (NYSE: WDC) and Hitachi, Ltd. (NYSE: HIT / TSE:6501) announced today that they have entered into a definitive agreement whereby WD will acquire Hitachi Global Storage Technologies (Hitachi GST), a wholly-owned subsidiary of Hitachi, Ltd., in a cash and stock transaction valued at approximately $4.3 billion. The proposed combination will result in a customer-focused storage company, with significant operating scale, strong global talent and the industry’s broadest product lineup backed by a rich technology portfolio.
Under the terms of the agreement, WD will acquire Hitachi GST for $3.5 billion in cash and $25 million WD common shares valued at $750 million, based on a WD closing stock price of $30.01 as of March 4, 2011. Hitachi, Ltd. will own approximately ten percent of Western Digital shares outstanding after issuance of the shares and two representatives of Hitachi will be added to the WD board of directors at closing. The transaction has been approved by the board of directors of each company and is expected to close during the third calendar quarter of 2011, subject to customary closing conditions, including regulatory approvals. WD plans to fund the transaction with a combination of existing cash and total debt of approximately $2.5 billion.
WD expects the transaction to be immediately accretive to its earnings per share on a non-GAAP basis, excluding acquisition-related expenses, restructuring charges and amortization of intangibles.
The resulting company will retain the Western Digital name and remain headquartered in Irvine, California. John Coyne will remain CEO of WD, Tim Leyden COO and Wolfgang Nickl CFO. Steve Milligan, president and CEO of Hitachi GST, will join WD at closing as president, reporting to John Coyne.
“The acquisition of Hitachi GST is a unique opportunity for WD to create further value for our customers, stockholders, employees, suppliers and the communities in which we operate,” said John Coyne. “We believe this step will result in several key benefits: enhanced R&D capabilities, innovation and expansion of a rich product portfolio, comprehensive market coverage and scale that will enhance our cost structure and ability to compete in a dynamic marketplace. The skills and contributions of both workforces were key considerations in assessing this compelling opportunity. We will be relying on the proven integration capabilities of both companies to assure the ongoing satisfaction of our customers and to bring this combination to successful fruition.”
“This brings together two industry leaders with consistent track records of strong execution and industry outperformance,” said Steve Milligan. “Together we can provide customers worldwide with the industry’s most compelling and diverse set of products and services, from innovative personal storage to solid state drives for the enterprise.”
Hiroaki Nakanishi, president, Hitachi, Ltd. said, “As the former CEO of Hitachi GST, I always believed in the potential of Hitachi GST to become a larger and more agile company. This is a strategic combination of two industry leaders, both growing and profitable. It provides an opportunity for the new company to increase customer and shareholder value and expand into new markets. Additionally, it is important to us that WD shares common values with Hitachi GST to create a more global company that is well positioned to define a broader role in the evolving storage industry.”
WD’s exclusive financial adviser on the transaction is Bank of America Merrill Lynch; its lead legal adviser is O’Melveny & Myers LLP. Goldman, Sachs & Co serves as financial adviser to Hitachi, Ltd. and Hitachi GST. Legal advisers to Hitachi, Ltd. and Hitachi GST are Morrison Foerster LLP and Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates, respectively.
WD, one of the storage industry’s pioneers and long-time leaders, provides products and services for people and organizations that collect, manage and use digital information. The company designs and produces reliable, high-performance hard drives and solid state drives that keep users’ data accessible and secure from loss. Its advanced technologies are configured into applications for client and enterprise computing, embedded systems and consumer electronics, as well as its own consumer storage and home entertainment products.
WD was founded in 1970. The company’s storage products are marketed to leading OEMs, systems manufacturers, selected resellers and retailers under the Western Digital(R) and WD(R) brand names. Visit the Investor section of the company’s Website (www.westerndigital.com) to access a variety of financial and investor information.
Hitachi, Ltd., headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled ¥8,968 billion ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company’s website at http://www.hitachi.com.
Hitachi GST develops advanced hard disk drives, enterprise-class solid-state drives and innovative external storage solutions and services used to store, preserve and manage the world’s most valued data. Founded by the pioneers of hard drives, Hitachi GST provides high-value storage for a broad range of market segments, including Enterprise, Desktop, Mobile computing, Consumer Electronics and Personal Storage. Hitachi GST was established in 2003 and maintains its U.S. headquarters in San Jose, California. For more information, please visit the company’s website at http://www.hitachigst.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include statements concerning the immediate accretion and other benefits expected from the transaction, the expected timing of the completion of the transaction and management’s anticipated plans and strategies for the combined company. These forward-looking statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including: delays in or failure to obtain any required regulatory approvals with respect to the transaction; failure to consummate or delay in consummating the transaction for other reasons; the possibility that the expected benefits of the transaction may not materialize as expected; failure to successfully integrate the products, R&D capabilities, infrastructure and employees of WD and Hitachi GST; and other risks and uncertainties detailed in WD’s filings with the SEC, including WD’s recent Form 10-Q filed with the SEC on Jan. 28, 2011 for the quarter ended Dec. 31, 2010, to which your attention is directed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and WD undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. In addition, this press release contains information about a non-GAAP financial measure. Please note that this non-GAAP financial measure excludes acquisition-related expenses, restructuring charges and amortization of intangibles that we expect to incur in connection with the transaction and following the closing of the transaction. Because these items will not be known to us until on or after the closing of the transaction, we are unable to provide information about the most directly comparable GAAP financial measure. The impact of these excluded items will cause the non-GAAP financial measure to differ materially from the comparable GAAP financial measure.
Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:
The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.
[Media Release]
Western Digital, WD, and the WD logo are registered trademarks of Western Digital Technologies, Inc. All other trademarks mentioned herein belong to their respective owners.
As many families are planning for ways to welcome the coming year, Western Digital®, the world’s leader in external storage solutions, gives you new ways to store and share the keepsakes that you create, and gives you the freedom to make more memories with the WD® TV Live Hub™.
This media center lets you collect the things that matter to you safe in one place, share the things that you love with your family and friends using multiple devices anywhere in your home, and lets you experience a whole new level of entertainment.
Here are the new things to love about the WD TV Live Hub Media Center:
With the numerous options and amazing features WD® TV Live Hub™ offers, you and your family have more reasons to welcome the coming year together!
[Media Release]
WD® (NYSE: WDC), the world’s leader in external storage solutions, today announced that the WD TV Live HD media player, featuring network capability and Full-HD 1080p resolution, is the first network media player compatible with Windows 7. The WD TV Live HD media player makes it easy for anyone to play media stored on USB and network drives, any PC on the home network, as well as content from popular websites, on the biggest television screen in their home.
Using the Windows 7 Play To feature, users can initiate and control the streaming of video, music or photos to the WD TV Live HD media player and home entertainment systems from any Windows 7-based PC on their network. Any compatible media file accessible from the PC — located either on the PC or on the network — can be played to the WD TV Live by right clicking on the file name in the folder or directly from within Windows Media Player 12 and choosing the WD TV Live HD media player as the playback device.
Current users of the WD TV Live will need to update their media player to the latest firmware in order to use the Windows 7 Play To feature. Instructions for updating the WD TV Live HD media player can be found here.
“Microsoft is pleased that Western Digital has earned the Compatible with Windows 7 logo and is supporting the Play To feature with WD TV Live HD media player,” said Mark Relph, senior director, Windows Ecosystem Product Management at Microsoft Corp. “Now more than 100 million Windows 7 customers will have an affordable and easy way to play files to their HD TVs and other devices from their PC.”
“We regularly engage with WD TV Live enthusiasts in our online community. Many have been asking for a way to “push” media from their PCs to their TV or home theater system, especially from laptops. With the new Windows 7 Play To feature, users can select music or movies from their laptop and play it on an HD TV connected to a WD TV Live HD media player, whether the HD TV is across the living room or in a different room altogether,” said Dale Pistilli, vice president of marketing for WD’s branded products group. “WD worked closely with Microsoft on this exciting new feature to ensure the seamless compatibility of the WD TV Live HD media player with Windows 7 PC’s and deliver WD TV Live users what they want.”
Features of the Windows 7-compatible WD TV Live HD media player include:
The WD TV Live HD media player is distributed by Axis Global Technologies, Inc. and ATP Peripherals (Phils), Inc. and is available now at select retailers in Philippines. Covered by a 1-year limited warranty, the MSRP for WD TV Live HD media player is ₱7,500.
[Media Release]
Western Digital, WD, WD TV and the WD logo and My Book are registered trademarks; WD TV, World Edition and My Passport are trademarks of Western Digital Technologies, Inc. Other marks may be mentioned herein that belong to other companies. All other brand and product names mentioned herein are the property of their respective companies. One gigabyte (GB) = 1 billion bytes. One terabyte (TB) = one trillion bytes. Total accessible capacity varies depending on operating environment.
Manila, 25 May 2010 — More than a year ago, WD® devised the WD Caviar® Blue™, WD Caviar® Green™ and WD Caviar® Black™ hard drive series, designed to help consumers make better informed choices in selecting their digital storage solutions. Now, in the Philippines, these hard drives have faces and personalities in the forms of Brent, Gus and Blake.
Brent represents the WD Caviar Blue hard drive, which is built for everyday computing. Gus represents the WD Caviar Green hard drive, engineered to be cool, quiet and eco-friendly for reducing carbon footprint and saving our Planet Earth. Blake represents the WD Caviar Black hard drive, which is built to be fast and powerful for gaming enthusiasts and overclocker fans who want speed at their fingertips.
Brent, Gus and Blake are fast gaining popularity and teasing chuckles out of netizens as their animated episodes pick up tens of thousands of views. Following the launch of the trailer episode last Christmas, the story of Brent continues with his misadventure with his extremely spontaneous girl. In episode three, Gus consults his disk doctor about his non-nature loving girl who is driving him up the wall. And in episode four, Blake is in therapy with his disk doctor and complaining of his girlfriend who is unable to appreciate the victory that he had achieved through his passion in racing. They all have something in common. Visit WD’s The Power of Choice website here to see Brent, Gus and Blake in action.
Together with the launch of episode four, WD introduces the new WD Blue, Green and Black Photo Hunt Contest. This is the 2nd online marketing campaign following the success of the BGB Photo and Digital Art Contest which had just announced the winners last April. Contestants for the Photo Hunt Contest are required to spot all the differences between the two photos before the time runs out. Pit against the clock for a high score and stand a chance to win attractive prizes like Canon EOS 550D digital SLR camera, Apple® iPad™ 64GB with Wi-Fi + 3G, Mac mini 160GB and more. Click here for the contest mechanics.
WD, one of the storage industry’s pioneers and long-time leaders, provides products and services for people and organizations that collect, manage and use digital information. The company designs and produces reliable, high-performance hard drives and solid state drives that keep users’ data accessible and secure from loss. Its advanced technologies are configured into applications for client and enterprise computing, embedded systems and consumer electronics, as well as its own consumer storage and media products.
WD was founded in 1970. The company’s storage products are marketed to leading OEMs, systems manufacturers, selected resellers and retailers under the Western Digital® and WD brand names. Visit the Investor section of the company’s Web site to access a variety of financial and investor information.
[Media Release]
Western Digital, WD, the WD logo and WD Caviar are registered trademarks of Western Digital Technologies, Inc. in the US and other countries; Black, Green and Blue are trademarks of Western Digital Technologies, Inc. All other trademarks herein are property of their respective owner. As used for storage capacity, one megabyte (MB) = one million bytes, one gigabyte (GB) = one billion bytes, and one terabyte (TB) = one trillion bytes. Total accessible capacity varies depending on operating environment.
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