Seagate to Participate in Consortium Led by Bain Capital Private Equity to Acquire Toshiba Memory Corporation
September 28 2017 - 5:31AM
Business Wire
- Commits to Provide up to $1.25 Billion in
Financing
- Expects to Enter into a Long-Term NAND
Supply Agreement
Seagate Technology plc (NASDAQ: STX), a world leader in storage
solutions, today announced its participation in the consortium led
by Bain Capital Private Equity that has entered into an agreement
with Toshiba Corporation to acquire Toshiba Memory Corporation
("Toshiba Memory"). In the agreement, Seagate has committed to
provide up to $1.25 billion in financing to support the
acquisition, to be provided at closing, which is expected by March
2018. In addition, Seagate expects to enter into a long-term NAND
supply agreement with Toshiba Memory that will provide continuity
of raw NAND for Seagate's expanding SSD product portfolio. Seagate
expects this transaction to be accretive to its earnings.
"Over the course of many years, Seagate has developed an
excellent long-term relationship with Toshiba Memory, and we have
always been impressed with their consistent leadership in advancing
NAND technology," said Steve Luczo, Seagate's chairman and chief
executive officer. "We are pleased and honored to be part of the
Bain Capital consortium and to help facilitate maintaining Toshiba
Memory as a world leading independent NAND technology company. We
know that Bain Capital is dedicated to the long-term success of
Toshiba Memory and believe this acquisition is in the long-term
best interests of our industry and of storage customers
worldwide."
Luczo continued, "In the coming years, the storage industry will
see significant data creation and increased storage needs, and we
must be able to support those demands. Our NAND supply agreement
with Toshiba Memory will enable Seagate to continue innovating and
providing customers with storage solutions that fit their needs, be
they HDDs, SSDs, or hybrid solutions."
"Seagate has developed its NAND storage technology portfolio
over the last five years and today the Company has a broad offering
of flash-based products that are ready to scale and grow across
multiple markets," said Dave Mosley, Seagate's president and chief
operating officer. "Bolstering Seagate's NAND supply through a
long-term agreement with Toshiba Memory increases the potential for
meaningful future revenue growth from Seagate's SSD storage
portfolio while providing significant value for our storage
customers."
Centerview Partners is acting as financial advisor to Seagate
and Wilson Sonsini Goodrich & Rosati Professional Corporation
is acting as its legal advisor.
About Seagate
Seagate creates space for the human experience by innovating how
data is stored, shared and used. Learn more at www.seagate.com.
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© 2017 Seagate Technology LLC. All rights reserved. Seagate,
Seagate Technology, and the Spiral logo are registered trademarks
of Seagate Technology LLC in the United States and/or other
countries. All other trademarks or registered trademarks are the
property of their respective owners. When referring to drive
capacity, one gigabyte, or GB, equals one billion bytes and one
terabyte, or TB, equals one trillion bytes. Your computer’s
operating system may use a different standard of measurement and
report a lower capacity. In addition, some of the listed capacity
is used for formatting and other functions, and thus will not be
available for data storage.
Cautionary Note Regarding Forward-Looking Statements
Some of the statements and assumptions included in this press
release are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 or Section 21E of the
Securities Exchange Act of 1934, each as amended, including, in
particular, statements about our plans, strategies and prospects,
continuity of long-term NAND supply, demand for our products, our
product offerings, completion of Bain Capital’s acquisition of
Toshiba Memory Corporation and estimates of industry growth. These
statements identify prospective information and may include words
such as “expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” “projects,” “may,” “will,” or negative of
these words, variations of these words and comparable terminology.
These forward-looking statements are based on information available
to the Company as of the date of this press release and are based
on management’s current views and assumptions. These
forward-looking statements are conditioned upon and also involve a
number of known and unknown risks, uncertainties and other factors
that could cause actual results, performance or events to differ
materially from those anticipated by these forward-looking
statements. Such risks, uncertainties and other factors may be
beyond our control and may pose a risk to our operating and
financial condition, and include the risks that the acquisition of
Toshiba Memory Corporation fails to be consummated and K.K. Pangea
is unable to repay the preferred stock when due. For additional
information, please see the “Risk Factors” section of the Company’s
Annual Report on Form 10-K filed with the U.S. Securities and
Exchange Commission on August 4, 2017.
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version on businesswire.com: http://www.businesswire.com/news/home/20170928005552/en/
Seagate Technology plcKristi Labrum, 801-631-2669Corporate
Public Relations Managerkristi.labrum@seagate.com
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