Western Digital buys platter maker Komag
Hard drive maker Western Digital has agreed to buy media manufacturer Komag for a cool $1 billion in cash. Komag describes itself as a "leading independent supplier" of thin-film disks, which are used for storage platters in hard drives. It also claims to have the industry's largest customer base, including not just WD but also Hitachi GST and Seagate.
According to Western Digital President and CEO John Coyne, the deal will help secure supply of media and also increase product reliability:
This acquisition will enable WD to optimize synergies through the integration of heads and media, secure our long-term supply of media, and sharpen our ability to deliver high quality, highly reliable and cost-effective products to our customers. We believe that Komag's highly-skilled employees, an industry-leading position with perpendicular magnetic recording media, and its operational excellence will further strengthen WD's competitive position.
WD Executive VP of Finance Tim Leyden also states that the company expects "meaningful cost benefits" to result within 12 months of the acquisition.