Hitachi completes purchase of IBM drive business

Zardon · Jan 1, 2003, 07:35 AM

HITACHI ON TUESDAY completed its purchase of the majority of IBM's hard disk drive manufacturing business for $2.05 billion, IBM said in a statement.

Hitachi paid 70 percent of the purchase price Tuesday, with the remaining 30 percent to be paid to IBM over a three-year period, IBM said. Under the agreement, Hitachi will form a new company called Hitachi Global Storage Technologies, based in San Jose, Calif.

IBM, in Armonk, New York, and Tokyo-based Hitachi announced in April their intention to create the new company from the two companies' hard disk drive divisions. IBM said at the time it wanted to focus on other areas of the storage market.

Both the U.S. Federal Trade Commission and the European Commission had to sign off on the deal before it could be completed. Tom Krazit

Jan 1, 2003, 07:35 AM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	Hitachi completes purchase of IBM drive business HITACHI ON TUESDAY completed its purchase of the majority of IBM's hard disk drive manufacturing business for $2.05 billion, IBM said in a statement. Hitachi paid 70 percent of the purchase price Tuesday, with the remaining 30 percent to be paid to IBM over a three-year period, IBM said. Under the agreement, Hitachi will form a new company called Hitachi Global Storage Technologies, based in San Jose, Calif. IBM, in Armonk, New York, and Tokyo-based Hitachi announced in April their intention to create the new company from the two companies' hard disk drive divisions. IBM said at the time it wanted to focus on other areas of the storage market. Both the U.S. Federal Trade Commission and the European Commission had to sign off on the deal before it could be completed. Tom Krazit