Seagate, Samsung announce $1.375B strategic alignment

April 19, 2011

Seagate and Samsung have entered into a definitive agreement under which Seagate and Samsung will significantly expand and strengthen their strategic relationship by further aligning their respective ownership, investments and key technologies. A shareholder agreement under which an executive of Samsung will be nominated to join Seagate's Board of Directors. The combined value of these transactions and agreements is approximately $1.375B, which will be paid by Seagate to Samsung in the form of 50% stock and 50% cash. Seagate expects these transactions and agreements to be meaningfully accretive to non-GAAP diluted EPS and cash flow within the first full year following the closing, and Seagate does not expect any material restructuring costs in connection with them.