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Acquisitions
Acquisition of Virident Systems, Inc. (“Virident”)
On October 17, 2013, we acquired Virident, a provider of server-side flash storage solutions for virtualization,
database, cloud computing and webscale applications. Virident was fully integrated into our HGST subsidiary and
became our wholly owned indirect subsidiary. The purchase price of the acquisition was approximately $613 million,
consisting of $598 million which was funded with available cash and $15 million related to the fair value of stock
options assumed. The acquisition furthered HGST’s strategy to address the rapidly changing needs of enterprise cus-
tomers by delivering intelligent storage solutions that maximize application performance by leveraging the tightly
coupled server, storage and network resources of today’s converged datacenter infrastructures. The acquisition of Vir-
ident did not have a material impact on our consolidated financial statements for fiscal 2014.
Acquisition of sTec, Inc. (“sTec”)
On September 12, 2013, we completed the acquisition of sTec, a provider of enterprise SSDs. As a result of the
acquisition, sTec was fully integrated into our HGST subsidiary and became our wholly owned indirect subsidiary.
The acquisition augmented HGST’s existing solid-state storage capabilities. The purchase price of the acquisition was
approximately $336 million, consisting of $325 million which was funded with available cash and $11 million related
to the fair value of stock options and restricted stock units (“RSUs”) assumed. The acquisition of sTec did not have a
material impact on our consolidated financial statements for fiscal 2014.
Acquisition of VeloBit, Inc. (“VeloBit”)
On July 9, 2013, we acquired VeloBit, a privately held provider of high-performance storage I/O optimization
software. As a result of the acquisition, VeloBit was fully integrated into our HGST subsidiary and became our wholly
owned indirect subsidiary. The acquisition built on HGST’s strategy to enhance the overall value of datacenter storage
by integrating HGST SSDs with software. The acquisition did not have a material impact on our consolidated finan-
cial statements for fiscal 2014.
Hitachi Global Storage Technologies Holdings Pte. Ltd. (“HGST”) Acquisition
On March 8, 2012, we completed the acquisition of Viviti Technologies Ltd., known until shortly before the
acquisition as HGST, from Hitachi, Ltd. (“Hitachi”). The acquisition is intended over time, and subject to compliance
with the regulatory conditions discussed below under “Maintenance of Competitive Requirement,” to result in a more
efficient and innovative customer-focused storage company. We do not expect to achieve significant operating expense
synergies while the regulatory conditions are in effect. The aggregate purchase price of the HGST acquisition was
approximately $4.7 billion, consisting of $4.6 billion funded with $3.7 billion of existing cash and cash from new
debt as well as 25 million newly issued shares of our common stock with a fair value of $877 million, and $102 mil-
lion related to the fair value of stock options, RSUs and cash-settled stock appreciation rights (“SARs”) assumed.
Toshiba Transactions
In connection with the regulatory approval process of the HGST acquisition, we announced on May 15, 2012
that we had closed a transaction with Toshiba Corporation (“Toshiba”) to divest certain 3.5-inch hard drive assets and
to purchase Toshiba Storage Device (Thailand) Company Limited (“TSDT”), a wholly owned subsidiary of Toshiba
that manufactured hard drives prior to the Thailand flooding in 2011. The net impact of these two transactions was
immaterial to our consolidated financial statements. In August 2013, we received a $45 million insurance recovery
related to the Thailand flooding for the facilities acquired in connection with the acquisition of TSDT.
Maintenance of Competitive Requirement
In connection with the regulatory approval process of the HGST acquisition, we agreed to certain conditions
required by the Ministry of Commerce of the People’s Republic of China (“MOFCOM”), including adopting measures
to maintain HGST as an independent competitor until MOFCOM agrees otherwise (with the minimum period being
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