Seagate Technology, a renowned hard disk vendor, is ready to attain a consumer storage products manufacturer company, LaCie. Both companies have declared about this contract. Seagate has proposed to buy 64.5% stake of LaCie, at a cost of €4.05 for each share, in cash from its Chairman and CEO, Philippe Spurch and his associate, with a possible modification based on the debt and cashcondition of LaCie. This agreement is pending due to the approval of the government.
The contract is presently valued LaCie to nearly €146 million of its whole equity prices, that include netcash of €49 million, commencing from 31st March, 2012. A Price of €4.05 per share signifies a premiumof 29% equivalent to LaCie’s average 30-day trading price finishing on 22 May, 2012.
This deal composed of two corresponding technology and product range, adding LaCie’s rangeof top labeled consumer storage solutions, software and network-based storage solutionforSeagate’s collection of conventional consumer storage products. The blend is accepted to enhancethe Seagate’s progress scheme in the growing consumer storage area, especially in Japan andEurope. This deal will add up solid software and engineering enlargement ability, along with greatrelationships with numerous important dealers.
The deal is supposed to be unbiased to Seagate’s financial 2013 earnings per share.