Home Enterprise WD Subsidiary HGST Acquires sTec

WD Subsidiary HGST Acquires sTec

by storagereview

WD and sTec are announcing a merger whereby HGST, a subsidiary of WD, will acquire sTec for $340 million in cash – which is $6.85/share. sTec has long been an innovator in enterprise SSDs (such as the s840 that we’ve reviewed), and the acquisition cost represents roughly $207 million in enterprise value. Leading up to the announcement and continuing forward, Wells Fargo Securities has acted as WD’s financial advisor and BofA Merrill Lynch has done the same for sTec in regards to this particular transaction. The acquisition is still pending subject to customary conditions, though it should go through later in the year in Q3 or Q4.


WD and sTec are announcing a merger whereby HGST, a subsidiary of WD, will acquire sTec for $340 million in cash – which is $6.85/share. sTec has long been an innovator in enterprise SSDs (such as the s840 that we’ve reviewed), and the acquisition cost represents roughly $207 million in enterprise value. Leading up to the announcement and continuing forward, Wells Fargo Securities has acted as WD’s financial advisor and BofA Merrill Lynch has done the same for sTec in regards to this particular transaction. The acquisition is still pending subject to customary conditions, though it should go through later in the year in Q3 or Q4.

HGST stands to gain plenty here with their existing SSD capabilities now driven by the enterprise value sTec brings to the table. At the same time, HGST is still committed to its joint development program with Intel, and the two will continue to deliver current and future SAS-based SSD products.
sTec’s board of directors has unanimously approved the merger and is recommending sTec shareholders follow suit at their shareholder meeting.

sTec’s directors and executive officers have also begun separate voting agreements and have agreed to vote their shares in favor of the merger with some certain exceptions.

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