Flash Memory Summit: August 13-15 Santa Clara Convention Center

August 2, 2013

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HGST to Acquire sTec: FULL PR TEXT HERE

June 26, 2013

HGST to Deepen SSD Capabilities and Expertise with sTec IP and Engineering Talent 

SAN JOSE and SANTA ANA, Calif., June 24, 2013 – Western Digital® Corporation (NASDAQ: WDC) and sTec, Inc. (NASDAQ: STEC) announced today that they have entered into a definitive merger agreement under which sTec, Inc., an early innovator in enterprise solid-state drives (SSDs), will be acquired by HGST, a wholly-owned subsidiary of Western Digital. sTec will be acquired for approximately $340 million in cash, which equates to $6.85 per share. This represents approximately $207 million in enterprise value, net of sTec’s cash as of March 31, 2013.

The pending acquisition augments HGST’s existing solid-state storage capabilities, accelerating its ability to expand its participation in the rapidly growing area of enterprise SSDs. HGST remains committed to its highly successful joint development program with Intel® Corp. and will continue to deliver current and future SAS-based SSD products with Intel.

sTec has strong engineering talent and intellectual property that will complement HGST technical expertise and capabilities. HGST will continue to support existing sTec® products and collaborate with its customers to understand their future requirements.

“Solid state storage in the enterprise will play an increasingly strategic role in the future of Western Digital,” said Steve Milligan, president and chief executive officer, Western Digital Corporation. “This acquisition is one more building block in our strategy to capitalize on the dramatic changes within the storage industry by investing in SSDs and other high-growth storage products.”

“This acquisition demonstrates HGST’s ongoing commitment to the rapidly growing enterprise SSD segment, where we already have a successful product line,” said Mike Cordano, president, HGST. “We are excited to welcome such a talented team of professionals to HGST, where their inventive spirit will be embraced and encouraged.”

“At this key point in the evolution of the storage industry, sTec is excited to consummate this transaction. It will be an important next step in proliferating many of the innovative products and technologies that sTec has been known for throughout its 23-year history and provides immediate value for our shareholders and a strong future for our employees and customers,” said Mark Moshayedi, president and chief executive officer, sTec. “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 board of directors of sTec, on the unanimous recommendation of a special committee of independent directors of the board, has unanimously approved the merger agreement and has resolved to recommend that sTec shareholders approve the transaction at a sTec shareholders meeting to be held to approve the merger agreement and the merger. The directors and executive officers of sTec have entered into separate voting agreements under which they have agreed, subject to certain exceptions, to vote their respective shares in favor of the proposed transaction.

Wells Fargo Securities, LLC has acted as the financial advisor to Western Digital and BofA Merrill Lynch has acted as the financial advisor to sTec in connection with this transaction.

Closing of the acquisition, which is subject to customary conditions, is expected to occur in the third or fourth calendar quarter of 2013.


What does India have to say about Fusion-io?

August 1, 2011

MISSED OPPORTUNITY

In March, research firm Gartner lowered its growth forecast for 2011 PC shipments to 10.5 percent from its earlier view of 15.9 percent, citing the cannibalization of notebooks by tablet devices.

“For the September quarter, we’re forecasting notebook shipments on a global basis to be up only 10 percent sequentially, when historically they grew about 25 percent sequentially,” said Rodman & Renshaw analyst Ashok Kumar.

Not only are tablets using SSDs, but companies like Apple and Hewlett-Packard have started replacing hard disk drives with SSDs in their new laptops.

“The sad part is that traditional HDD vendors had a tremendous opportunity because they had scale (and) original equipment manufacturer relationships, but they missed out,” said Kaushik Roy, analyst at Merriman Capital.

As flash drives become cheaper, more PCs will switch, forcing HDD makers to muscle their way into a market dominated by STEC Inc , Fusion-io Inc and privately-held Violin Memory.

READ MORE HERE:  http://www.reuters.com/article/2011/08/01/diskdrives-idUSL3E7J133420110801?feedType=RSS&feedName=technologySector&rpc=43