SCOTTS VALLEY, Calif. (AP) -- Seagate is buying the hard disk drive business of Samsung in a $1.38 billion deal that gives the South Korean electronics manufacturer a nearly 10 percent stake in Seagate.
Seagate Technology and Samsung Electronics Co. said Tuesday they also agreed to extend their patent cross-licensing agreement and co-develop business data storage products.
Samsung has agreed to supply Seagate with chips for its hard drives. Seagate, meanwhile, will supply disk drives for Samsung's PCs, notebook computers and consumer electronics.
As part of the deal, a Samsung executive will be nominated to join Seagate's board. Samsung plans to pay Seagate in cash and stock.
The deal is expected to close by the end of the year. It must still be approved by U.S. and international regulators.