14 DAY TRIAL // Seagate didn't become so large just because of its own ideas, but also thanks to the buyout of various companies in the same field, that of computer storage.
One of the more recent such acquisitions is that of LaCie, a provider of external storage devices like hard drives and network-attached storage units.
The company also develops software for mainstream consumer storage products.
Seagate hopes to use LaCie's expertise and customer channels to increase its presence in Japan and Europe, as well as its relationships with retailers.
“With the proliferation of devices and content being shared and stored today, consumer demand for high-quality branded storage solutions continues to grow,” said Philippe Spruch, LaCie’s chairman and CEO, back when the deal was first announced.
“We are excited about the potential for this combination to benefit customers and employees by creating significant scale and opening up new markets. We look forward to making the resources of a much larger company available to our customers around the world."
LaCie is valued at €146 million, or $186 million total equity value, of which approximately €49 million, or $65 million, is net cash.
Currently, Seagate holds 64.5% of all LaCie outstanding shares, but it has every intention of buying more, until at least 95% of the share capital and voting rights belong to it.
“Seagate has a strong commitment to the growing consumer storage market and bringing the most dynamic products to market. LaCie has built an exceptional consumer brand by delivering exciting and innovative high-end products for many years,” said Steve Luczo, Seagate chairman, president and CEO.
“This transaction would bring a highly complementary set of capabilities to Seagate, significantly expand our consumer product offerings, add a premium-branded direct-attached storage line, strengthen our network-attached storage business line and enhance our capabilities in software development. We are also excited that Philippe, who is a true visionary and leader in the consumer storage business, would join Seagate to run our consumer storage products organization.”