Lake Forest’s Western Digital Corp., the top maker of disk drives for computers, portable storage devices and consumer electronics, acquired some assets of Japanese glass maker Hoya Corp. for $235 million.
The cash deal, announced last month, is expected to close during the current quarter.
The move helps Western Digital get a steady supply of glass that goes into 2.5-inch disk drives, which are used primarily in notebook computers and their smaller cousins, netbooks.
Hoya is the biggest supplier of glass substrates, which are applied as a thin layer on the spinning magnetic disks that make up the bulk of a drive.
“The acquisition will augment Western Digital’s existing magnetic media operations, strengthening its ability to meet anticipated growth in demand for hard drives in the years ahead,” the company said.
As part of the deal, Western Digital is set to get Hoya’s Singapore facilities, intellectual property and some research and development offices in Nagasaki, Japan.
Hoya’s current workers are set to join Western Digital. The unit will become a subsidiary of the company’s media operations.
In the past 10 years or so, Western Digital has been making strategic buys that allow it to make nearly all of the disk drive itself.
This helps ensure a steady supply of parts and cuts down on costs.
The Hoya unit is likely to continue supplying glass to other disk drive makers, including Western Digital’s main rival, Scotts Valley-based Seagate Technology LLC.
Based on past acquisitions of parts makers, Western Digital is likely to phase out sales to other drive makers as contracts run out.
The Hoya acquisition “does protect Western Digital from shortages by putting them to the front of the line” ahead of competitors, Rich Kugele, an analyst at Needham & Co. in Boston, said in a research note.
In 2007, Western Digital paid $1 billion for San Jose’s Komag Inc., a drive parts maker.
In 2003, it acquired Fremont’s Read-Rite Corp., which makes a part of the drive that reads and writes the data, for around $95 million.
Local Hire
Irvine’s Local.com Corp., which runs an online search engine for finding local businesses and products, added an AOL Inc. veteran to its executive ranks.
The company hired Rajan Mohan to help develop all of Local.com’s owned and operated Web properties.
He’s set to report to Bruce Crair, Local.com’s president and operations chief.
One of the company’s goals is to drive more traffic to Local.com and future sites.
Mohan brings more than 13 years of digital media experience and most recently was director of Web search and local for AOL’s European division.
Based in London, he was responsible for driving sales, product development, marketing, design, and forecasting and reporting the company’s European Web and local search businesses, which served some 10 million consumers each month.
Prior to AOL, Mohan was principal consultant for Hughes Network Systems LLC, a unit of Maryland’s Hughes Communications Inc., a broadband Internet service provider.
Late last year, Local.com reorganized and divided itself into three business units, dubbed “owned and operated,” “network” and “sales and advertiser services.”
MegaPath Hire
Costa Mesa’s MegaPath Inc., a technology services outsourcing company that last month combined with San Jose-based Covad Communications Group, is beefing up its reseller channel.
MegaPath hired Darren Chamberlain as director of channel sales.
He’s set to focus on building relationships with strategic partners and distributors, as well as developing and implementing strategies, plans and programs for MegaPath’s resellers.
Chamberlain has worked for a slew of telecommunications companies, including Cable & Wireless Worldwide PLC, Sprint Nextel Corp., XO Communications LLC, Global Crossing Ltd. and Band-width.com Inc.
MegaPath, which started in 1998, provides what’s called “managed services” to companies, in which it offers voice-over Internet, data networking and network security services.
Bits and Pieces:
Irvine-based RFaxis Inc. Chief Executive Mike Neshat recently received the EE Times Ace Award for startup of the year. RFaxis, which makes specialized chips for cell phones, targets what’s known as front-end circuitry, the most finicky part of a circuit board. “We all know that startups are essential for kick-starting the recovery and stimulating job growth,” Neshat said … Irvine’s Blizzard Entertainment Inc., the top maker of online games that’s part of Santa Monica’s Activision Blizzard Inc., is weirdly embroiled in a gambling scandal that’s made headlines in South Korea. Blizzard’s “StarCraft” game is played professionally and broadcast on national TV in South Korea, where it’s drawn a substantial following of illegal gamblers, according to reports … Irvine-based Broadcom Corp. created a Bluetooth chip that’s designed to help manufacturers make better hands-free car kits. Its technology reduces background noise and has a long battery life. South Korea’s Samsung Group already is a customer.