InsaneTek

Western Digital, one of the biggest names in the hard-drive business, announced today that it has bought Hitachi's Global Storage Technologies company for cash and stock together worth $4.3 billion. John Coyne, president and chief executive officer of WD, said:

"The acquisition of Hitachi GST is a unique opportunity for WD to create further value for our customers, stockholders, employees, suppliers and the communities in which we operate. We believe this step will result in several key benefits—enhanced R&D capabilities, innovation and expansion of a rich product portfolio, comprehensive market coverage and scale that will enhance our cost structure and ability to compete in a dynamic marketplace. The skills and contributions of both workforces were key considerations in assessing this compelling opportunity. We will be relying on the proven integration capabilities of both companies to assure the ongoing satisfaction of our customers and to bring this combination to successful fruition."

After receiving all of the stock, Hitachi will own about 10% of Western Digital and two of Hitachi's board members will be on Western Digital's board of directors. If you want to read a more in-depth look at how the merger will happen, check out this link.