Toshiba Corp. and Fujitsu Ltd. signed a ¥30 billion deal calling for Fujitsu to fully hand over its hard-disk drive business to Toshiba via a two-stage stock deal to be completed by the end of 2010, the two said Thursday.
Under the deal, Fujitsu’s HDD-related business and functions will be transferred to Toshiba Storage Device Corp., which will be set up shortly in Tokyo’s Shibaura district. The new firm, with a workforce of 980 engineers and other personnel, will take charge of HDD design, and research and development, the two companies said.
Fujitsu’s HDD-manufacturing units, Fujitsu Computer Products Corp. of the Philippines and Fujitsu (Thailand) Co., will be renamed Toshiba Storage Device (Philippines) Inc. and Toshiba Storage Device (Thailand) Co., they said.
After the transfer, Toshiba will handle the marketing of all HDD products, including Fujitsu’s. Most of Fujitsu’s marketing offices outside of Japan will be transferred to Toshiba’s overseas divisions.
Toshiba will then acquire an 80.1 percent stake in Toshiba Storage Device from Fujitsu for ¥24 billion by July 1, with Fujitsu handing over the remaining stake to Toshiba for ¥6 billion by Dec. 31, 2010.
The ¥30 billion combined acquisition cost does not include the ¥6 billion in net debt Toshiba Storage Device will take over from Fujitsu’s HDD business, the companies said.
The deal will entail the transfer of 800 employees in Japan and 7,000 employees overseas in the Fujitsu group’s HDD divisions to the Toshiba group.
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