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Western Digital Acquiring sTec to expand further into the Enterprise SSD market

Western Digital keeps its momentum going by making another strategic acquisition in the enterprise SSD market.

Western Digital and sTec inc. have announced today that they have entered into an agreement to merge with sTec inc. falling under HGST, a wholly –owned subsidiary of Western Digital. The acquisition will cost Western Digital around $340 million.

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.

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