Western Digital Acquires SSD Maker sTec
Yesterday Western Digital announced that it has completed the acquisition of enterprise SSD maker sTec Inc., and will integrate the new company into its subsidiary, HGST. The acquisition augments HGST's existing solid-state storage capabilities, accelerating its ability to expand its participation in the rapidly growing area of enterprise SSDs, the company said.
"We are excited to welcome the sTec team to HGST, where they will play a key role in our ongoing growth," said Mike Cordano, president, HGST. "sTec has a strong technology capability and foundational intellectual property that will support our initiative to deliver intelligent storage devices tailored to meet the evolving needs of today's datacenter customer."
Western Digital announced its intention to acquire sTec towards the end of June, saying that it would shell out approximately $340 million in cash, which equates to $6.85 per share. This number represented approximately $207 million in enterprise value, net of sTec’s cash as of March 31, 2013. Once completed, subsidiary HGST will continue to support existing sTec products and collaborate with sTec customers on future purchases.
"At this key point in the evolution of the storage industry, sTec is excited to consummate this transaction. It will be an important next step in proliferating many of the innovative products and technologies that sTec has been known for throughout its 23-year history and provides immediate value for our shareholders and a strong future for our employees and customers," said Mark Moshayedi, president and chief executive officer, sTec.
sTec's storage solutions for the enterprise include PCIe, SAS, SATA, FC and RAM-based form factors including the s1120 PCIe Accelerator, the s846 2.5 inch Self-encrypting Drive, the ZeusIOPS FC SSD, the s620 SATA SSD and the ZeusRAM SAS SSD. The company's software portfolio includes EnhanceIO SSD Cache Software and the sTec Device Manager. sTec even offers the s3000 Series solid-state storage appliance and embedded SSDs.
sTec just announced its s260 mSATA SSDs on Tuesday, a solution for embedded storage in rugged, space-conscious environments. The s260 drives are compliant with the JEDEC-defined MO-300A and MO-300B (mSATA mini) standards, and draw just 1.5 watts of power. They deliver "industry-leading" reliability through sTec’s patented PowerSafe technology and support industrial temperatures, ranging from -40 degrees to 85 degrees Celsius, the company said.
"sTec has strong engineering talent and intellectual property that will complement HGST technical expertise and capabilities," Western Digital said. The sTec acquisition follows WD’s recent purchase of VeloBit, an advanced SSD caching software company, and the proposed acquisition of Virident, a provider of server-side flash storage solutions.
Kevin Parrish is a contributing editor and writer for Tom's Hardware,Tom's Games and Tom's Guide. He's also a graphic artist, CAD operator and network administrator.
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