Western Data Monday announces 340 million US dollar acquisition of solid state HDD manufacturer STEC

Summary: June 25 News, according to Reuters, hard drive manufacturing enterprises in the Western data Monday announced the acquisition of 340 million U.S. dollars in the troubled solid-state hard disk manufacturer Stec. This will make the western data into the solid-state hard drive business competition for the first camp. Solid state drives are better than traditional hard drives

June 25 News, according to Reuters, hard drive manufacturing enterprises in the Western data Monday announced the acquisition of 340 million U.S. dollars in the troubled solid-state hard disk manufacturer Stec. This will make the western data into the solid-state hard drive business competition for the first camp.

Solid-State drives are much faster than traditional hard drives, and have slowly replaced traditional hard drives. Stec is one of the first manufacturers of solid-state hard drives, but its market share has been eroded by Western data, Seagate Technology and the market leader Fusion-io companies.

Last year, Stec co-founder and CEO was forced to resign for insider trading scandals. The market share of the STEC has fallen by half this year, so being acquired is a major boon. The deal is expected to be completed in the third or fourth quarter of this year. Rich-country securities as a financial advisor for Western data in the deal, BofA Merrill Lynch as Stec's financial advisor.

Western Digital bid for 6.85 dollars per share, compared to the Friday Stec closed a premium of 91%. In the Nasdaq early trading, STEC's shares rose 87% to 6.74 dollars. Western data shares fell 1.5%.