By Lisa Kerner
Charlotte, N.C., June 28 - Western Digital Corp. agreed to acquire Komag, Inc. for $32.25 per share in a cash tender offer.
Both companies' boards of directors have unanimously approved the deal, which is valued at approximately $1 billion and is expected to close in the third quarter of 2007.
Western Digital said it will fund the transaction, including the retirement of Komag's convertible notes due 2014, through the companies' cash and with proceeds from a senior secured term loan of up to $1.25 billion.
"This acquisition is a significant step in the evolution and differentiation of Western Digital as a leader in the worldwide hard drive industry," Western Digital president and chief executive officer John Coyne stated in a company news release. "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."
Western Digital is a Lake Forest, Calif. disk drive company, and Komag is a San Jose, Calif.-based supplier of thin-film disks.
| Acquirer: | Western Digital Corp.
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| Target: | Komag, Inc.
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| Transaction total: | $1 billion
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| Price per share: | $32.25
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| Announcement date: | June 28
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| Expected closing: | Third quarter of 2007
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| Stock price for target: | Nasdaq: KOMG: $29.09 on June 27
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