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Western Digital To Buy STec

STec had been engaged in a proxy fight with Balch Hill Capital LLC, which hasn’t commented on the acquisition

HDD maker Western Digital has agreed to buy STec and its NAND flash storage technology for roughly $340 million in cash or $207 million net of STec’s cash.

At $6.85 a share, it’ll be paying a 91% premium to diversify out of the PC slowdown-created drag on its HDD business.

“Solid state storage in the enterprise will play an increasingly strategic role in the future of Western Digital,” CEO Steve Milligan said in a statement. “This acquisition is one more building block in our strategy to capitalize on the dramatic changes within the storage industry.”

The deal should close before the end of the year and STec should become part of Western Digital’s wholly owned subsidiary HGST, joining an existing line of solid-state drives for businesses.

HGST has a joint development program with Intel to develop solid-state disk drives.

STec had been engaged in a proxy fight with Balch Hill Capital LLC, which hasn’t commented on the acquisition.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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