Western Digital Corporation Announces Decision from
China’s Ministry Of Commerce Enabling Integration Of Substantial Portions Of
HGST And WD Subsidiaries
Decision Positions Company to Accelerate Innovation
and Better Serve Customers
IRVINE, Calif. — Oct. 19, 2015 — Western
Digital® Corporation (NASDAQ: WDC) today announced a decision from China's
Ministry of Commerce ("MOFCOM"), which enables the company to
integrate substantial portions of its HGST and WD subsidiaries under Western
Digital Corporation ("Western Digital"). As a unified entity, Western
Digital's extensive technology capability, deepened patent and product
portfolios, and talented global team will further drive its ability to innovate
and lead in the changing data storage industry.
The agency's decision is the result of
an ongoing dialogue regarding the "hold separate" restriction
associated with Western Digital's acquisition of HGST in March 2012. As part of
the agreement with MOFCOM, and in order to leverage the rich storage industry
heritage of each long-standing brand, Western Digital will continue to offer
both HGST and WD product brands in the market and maintain separate sales teams
for two years from the date of the decision.
"The decision announced today
positions us for continued growth and long-term value creation," said
Steve Milligan, chief executive officer of Western Digital. "HGST and WD
are an exceptional combination, and together, we will set the pace for
innovation in this dynamic and evolving industry."
Integration activities will begin
immediately and are expected to continue over the next 24 months. Western
Digital expects the integration of corporate and other key functions, including
research and development, heads and media operations, engineering and
manufacturing, will result in significant opportunities for growth, synergies
and cost savings consistent with the levels previously outlined by the company.
The company also announced today that
Mike Cordano, formerly president of the HGST subsidiary, has been appointed
president and chief operating officer of Western Digital by the company's board
of directors. In his new role, Cordano will head a business leadership team
with balanced representation of proven leaders from the company's two former
subsidiaries.
Jim Murphy, who previously served as
president of the WD subsidiary, will lead the Storage Devices business unit,
which includes the company's HDD and SSD products. Jim Welsh and Dave Tang will
lead the company's Content Solutions and Storage Solutions business units,
respectively.
Steve Milligan will continue to serve as
chief executive officer of Western Digital Corporation and oversee all business
and corporate functions, including an Advanced Technology organization led by
Steve Campbell, former chief technology officer for HGST. The appointments
announced today are effective immediately.
With mobility and the cloud continuing
to drive rapid data growth, businesses and consumers are increasingly looking
for efficient and economical means to store, manage and access data. From businesses
that leverage data to generate insights for key decision-making to consumers
looking for a place to protect priceless memories, Western Digital helps
customers unlock and harness the power of data.
About
Western Digital
Founded in 1970, Western Digital Corp.
(NASDAQ: WDC), Irvine, Calif., is an industry-leading developer and
manufacturer of storage solutions that enable people to create, manage,
experience and preserve digital content. Its HGST and WD® subsidiaries are
long-time innovators in the storage industry. Western Digital is responding to
changing market needs by providing a full portfolio of compelling, high-quality
storage products with effective technology deployment, high efficiency,
flexibility and speed. Its products are marketed under the HGST and WD brands
to OEMs, distributors, resellers, cloud infrastructure providers and consumers.
Financial and investor information is available on the company's Investor
Relations website at investor.wdc.com.