toggle

AAPL Stock: 112.34 ( 0 )

Printed from http://www.macnn.com

Toshiba and Fujitsu detail terms of HDD deal

updated 04:30 pm EDT, Thu April 30, 2009

Toshiba, Fujitsu HDD deal

Toshiba Corporation and Fujitsu Limited on Thursday today announced the terms of the definitive agreement, following the pair's memorandum of understanding completed in mid-February. Under the agreement, Fujitsu will transfer its hard disk drive (HDD) business to Toshiba, with a target completion date of July 1st.

A new company, Toshiba Storage Device Corporation (TSDC), will assume all of Fujitsu's HDD-related business and functions, with Fujitsu's manufacturing operations in the Philippines and Thailand being renamed to Toshiba Storage Devices Philippines (TSDP) and Toshiba Storage Devices Thailand (TSDT). At the same time, Yamagata Fujitsu Limited will become Toshiba Storage Device Yamagata Corporation (TSDY), with all three companies becoming wholly-owned subsidiaries of TSDC once the deal is completed.

Toshiba will then handle the sales and marketing of all HDD products, while design, research and development and production handled by TSDC. The majority of Fujitsu's sales and marketing offices outside of Japan will be transferred to Toshiba's overseas business operations. Toshiba will acquire an 80.1 percent stake in TSDC by July 1st, with Fujitsu holding 19.9 percent of shares until the end of December 2010. On January 1st, 2011, Toshiba will receive all shares of TSDC.

The business transfer will see about 800 employees in Japan and nearly 7,000 worldwide transfer over from Fujitsu to Toshiba. The deal is expected to be worth the equivalent of about $305 million.

TSDC will be one of the largest hard drive makers, competing against rivals like Hitachi and Seagate.









by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Blue Yeti Studio

Despite being very familiar with Blue Microphones' lower-end products -- we've long recommended the company's Snowball line of mics ...

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

toggle

Most Commented