Hitatchi will be acquiring IBM’s money-losing hard disk business for US$2.05 billion, according to Reuters. Hitatchi has vowed to return the business to profitability and expects revenues of $5 billion next year, or a quarter of the global disk drive market, with that figure growing to $7 billion by 2006-2007. The new company will hold a commanding 60 percent share of the market for 2.5-inch drives, used in laptops and portable external drives, and is also expected to dominate sales of 3.5-inch drives alongside competitor Seagate.