WD enters SSD market with acquisition of SiliconSystems
Western Digital Corp., a world leader in hard drive storage for computing and consumer electronics applications, announced that it has completed a $65 million cash acquisition of SiliconSystems, a leading supplier of solid-state drives for the embedded systems market.
SiliconSystems' product portfolio includes solid-state drives with SATA, EIDE, PC Card, USB and CF interfaces in 2.5", 1.8", CF and other form factors. SiliconSystems has developed extensive intellectual property to address the stringent embedded systems market requirements to ensure data integrity, eliminate unscheduled downtime, protect application data and software and provide for data security and protection through its patented and patent-pending PowerArmor, SiSMART, SolidStor and SiSecure technologies.
"We are delighted to have the SiliconSystems team join WD," said John Coyne, president and CEO of WD. "The combination will be modestly accretive to revenue and margins as a result of SiliconSystems' existing position as a trusted supplier to the well-established $400 million market for embedded solid-state drives. SiliconSystems' intellectual property and technical expertise will significantly accelerate WD's solid-state drive development programs for the netbook, client and enterprise markets, providing greater choice for our customers to satisfy all their storage requirements."
Integration into WD begins immediately, with SiliconSystems now becoming known as the WD Solid-State Storage business unit, complementing WD's existing Branded Products, Client Storage, Consumer Storage and Enterprise Storage business units.
"WD's strong balance sheet, sales reach, and operations and logistics capabilities will allow us to greatly accelerate our penetration of our existing markets, while combining our engineering expertise with WD will enable us to develop new solid-state drives to broaden our overall product portfolio and address the emerging applications for solid-state storage in WD's existing customer base," said Michael Hajeck, a founder and CEO of SiliconSystems, now senior vice president and general manager of WD's Solid-State Storage business unit. "We are extremely excited to be joining WD and enabling an even stronger future for our talented team."