Hard disk drive maker Western Digital has agreed to buy Hoya's magnetic media operations business for $235 million in cash.
The deal will ensure that Western Digital has access to a key component for its 2.5-inch hard disk drive business. Irvine, Calif.-based WD said the acquisition will help the company finish components faster and provide it with cost advantages, geographic diversification, a new pool of employee talent, and a more secure supply line.
WD is buying Hoya's media sputtering factory in Tuas, Singapore, where it expects to employ the entire work force. Certain equipment at Hoya's Nagasaki, Japan-based research and development operation is included. The deal is expected to close in the current quarter. Hoya's Singapore operation was created in 1995 as a subsidiary of Japan-based Hoya. WD will spend $30 million in the next year as it streamlines the operation.
The agreement includes a commitment from Hoya to continue to support the glass substrate supply for this business for multiple years. WD said that the deal will augment the company's existing media operations as it prepares to meet demand for hard drives in the years ahead.