Western Digital Buys Rival Hitachi

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Western Digital has recently announced that they have agreed to buy rival Hitachi Ltd, according to a recent article posted on Bloomerg the deal is worth roughly $4.3 billion.

The two companies have been competing for years, however the market is changing due to different types of storage now available, it is thought that hard-disk drive shipments will drop by about 4 percent this quarter, which many believe is mainly due to the influx of tablets which use solid-state disk and flash storage instead.

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Last year Western Digital attempted to buy Seagate, however there were concerns surrounding antitrust issues therefore no deal ever materialized, it is thought that Western Digital will now target Seagate’s enterprise customers.

Before any talk of acquisitions arose Western Digital was the largest hard-drive manufacturer, Seagate was the second largest and Hitachi third, this deal surely means that Western Digital will undoubtedly be the largest manufacturer of had drives for years to come.

According to Bloomberg WD shipped 52.2 million drives in Q4 2010, Seagate came close with 48.9 million shipped units and Hitachi came in third place with 30.3 million units shipped, it is hard to see how Seagate will battle a company who will have such a large part of the HDD market, but Seagate has been around for 31 years and will undoubtedly plan to keep pushing forward with larger, faster and quieter drives.

If you would like to read more about this deal check out Bloomberg for full details.