Samsung has put an end to yesterday’s speculation by announcing a strategic partnership with Seagate. Under the agreement, Seagate will take over Samsung’s HDD business and will also extend the partnership with Samsung over other areas like:
- Extending the cross-license agreement between the companies
- Co-develop Enterprise Storage Solutions
- Disk Drive supply agreement to supply hard drives for Samsung hardware
- NAND flash memory supply agreement for use in Seagate’s SSD products
The overall value of this agreement is approx. US$1.375 billion where Samsung will be paid 50% with stock and remaining by cash. Samsung will also gain a stake in Seagate of about 9.6% and a place on Seagate’s Board of Directors.