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.