The deal includes an agreement for Seagate to supply disk drives to Samsung for its PCs, notebooks and consumer electronics.

Samsung will provide its semiconductor products to Seagate for use in solid state and solid state-hybrid drives.

Samsung will also receive “significant” equity ownership in Seagate, and a Samsung executive will join Seagate’s board of directors, under the deal.

The transaction, expected to close by the end of 2011, will extend and enhance the already existing patent cross-licensing agreements between the two companies.

Seagate is Longmont’s largest private employer, with about 1,150 employees at its Nelson Road facility.

The deal with South Korea-based Samsung will significantly expand Seagate’s customer access in China and Southeast Asia.

The deal now leaves two major players standing globally in the hard drive industry — Seagate and Western Digital.

Just last month, Western Digital announced it was buying Hitachi Global Storage Technologies for $4.3 billion.

By: DocMemory
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