With Q in decline and disarray, Carly (Fiorina) might well be acquiring the island of Atlantis - James C. Blasius
STORAGE VENDOR Western Digital has bought troubled solid-state disk (SSD) drive maker Stec for $340m and will integrate the firm under its HGST brand.
Stec, one of the first storage vendors to offer SSDs, hit trouble last year when its CEO was charged with insider trading by the US Securities and Exchange Commission (SEC). It has found a buyer after a year of steep losses despite having big name customers such as EMC. Western Digital will pay $340m in cash for Stec and absorb the firm in its HGST division.
Western Digital bought HGST less than two years ago and had to sell off parts of its business to Toshiba to appease antitrust regulators. Now HGST seems to be the focal point for Western Digital's SSD business, however the firm was quick to say that HGST will continue to work with Intel for Serial Attached SCSI (SAS) based SSDs.
HGST president Mike Cordano said, "This acquisition demonstrates HGST's ongoing commitment to the rapidly growing enterprise SSD segment, where we already have a successful product line. We are excited to welcome such a talented team of professionals to HGST, where their inventive spirit will be embraced and encouraged."
Stec president and CEO Mark Moshayedi said the purchase will allow the firm to continue developing enterprise SSD technology. He said, "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."
Western Digital said the purchase should close in the third or fourth quarter pending the usual round of approvals. µ
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