Seagate Joins Bain Capital-led Consortium With $1.25 Bln To Buy Toshiba Memory

(RTTNews) - Seagate Technology plc (STX), a storage solutions provider, Thursday announced its participation in the consortium led by Bain Capital Private Equity that has entered into an agreement to acquire Toshiba Memory Corp. from Japanese conglomerate Toshiba Corp. (TOSYY.PK, TOSBF.PK).

In the agreement, Seagate has committed to provide up to $1.25 billion in financing to support the acquisition, to be provided at closing, which is expected by March 2018.

In addition, Seagate expects to enter into a long-term NAND supply agreement with Toshiba Memory that will provide continuity of raw NAND for Seagate's expanding SSD product portfolio. Seagate expects this transaction to be accretive to its earnings.

Other US investors in the consortium include Apple Inc., Kingston Technology Corp. and Dell Technologies Capital.

Centerview Partners is acting as financial advisor to Seagate.