HGST, Inc. (formerly Hitachi Global Storage Technologies) is a wholly owned subsidiary of Western Digital that sells hard disk drives, solid-state drives, and external storage products and services. Hitachi Global Storage Technologies was founded on January 6, 2003 as a merger of the hard disk drive businesses of IBM and Hitachi. Hitachi paid IBM US$2.05 billion for its HDD business. On March 8, 2012, Western Digital (WD) acquired Hitachi Global Storage Technologies for $3.9 billion in cash and 25 million shares of WD common stock valued at approximately $0.9 billion. The deal resulted in Hitachi, Ltd. owning approximately 10 percent of WD shares outstanding, and reserving the right to designate two individuals to the board of directors of WD. It was agreed that WD would operate with WD Technologies and HGST as wholly owned subsidiaries and they would compete in the marketplace with separate brands and product lines.