TOKYO and HUTCHINSON, MN – TDK and Hutchinson Technology have entered into a merger agreement under which TDK will acquire all outstanding shares of common stock of HTI for base consideration of $3.62 per share, plus additional consideration of up to $0.38 per share.

As of September, HTI's net cash position was approximately $40 million. In addition to the satisfaction of HTI's outstanding debt, the merger values HTI's equity at approximately $126 million to $140 million.

“TDK and Hutchinson Technology have shared a long history in the disk drive industry, and I am very pleased that we can announce this agreement,” said Takehiro Kamigama, president and CEO of TDK. “HTI's expertise and capabilities in design, development, and manufacturing of high-precision components and assemblies will be a great addition to the TDK organization.”

The transaction has been approved by each company's board of directors and is expected to close in the first calendar quarter of 2016.

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