Company Spotlight: Western Digital

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Demand for digital storage continues to evolve. Western Digital is buying enterprise flash storage provider Virident Systems for about $685 million to help better address customers’ changing needs.

Hard drive maker Western Digital is buying flash storage provider Virident Systems.  FILE/ASSOCIATED PRESS
FILE/ASSOCIATED PRESS
Hard drive maker Western Digital is buying flash storage provider Virident Systems.

Virident will be acquired by HGST, a wholly-owned subsidiary of Western Digital, a computer hard drive maker. The transaction is expected to help the privately held Virident get to market quicker by taking advantage of the strong brand, relationships and global customer reach of HGST.

Virident CEO Mike Gustafson will become a senior vice president at HGST once the acquisition closes. He will report to HGST President Mike Cordano.

The deal is expected to close in the fourth quarter.

Western Digital’s shares are up 55 percent this year compared with the 18 percent rise of the Standard & Poor’s 500 index.

THE STOCK

Western Digital (WDC)

  • Monday’s close: $65.40 ▲ 0.41, or 0.63%
  • 52-week range: $32-$71
  • Annual dividend: $1
  • Dividend yield: 1.5%
  • Price-earnings ratio*: 16
  • Total return YTD: 55%
  • 1 year: 60%
  • 5 year**: 23%
  • 10 year* 19%
  • Market value: $15.5 billion

Note: Total returns through Sept. 9

* Trailing 12 months; ** Annualized

Sources: FactSet, Associated Press


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