Thursday 22 October 2015
Western Digital to acquire SanDisk for $19 billion
Western Digital Corporation, leading developer and manufacturer of storage solutions announced it will acquire SanDisk Corporation, global leader in flash storage solutions for a combination of cash and stock for about $19 billion.
The offer values SanDisk common stock at $86.50 per share or a total equity value of approximately $19 billion, using a five-day volume weighted average price ending on October 20, 2015 of $79.60 per share of Western Digital common stock. The transaction has been approved by the boards of directors of both companies.
“With this transaction, Western Digital will double its addressable market and expand its participation in higher-growth segments,” said the company.
Western Digital also said that the long term Joint Venture with Toshiba that provides stable NAND supply will be ongoing. Steve Milligan will continue to serve as CEO of the combined company, and the company will remain headquartered in Irvine, California. Upon closing, current President and CEO of SandDisk Sanjay Mehrotra is expected to join the Western Digital Board of Directors.
The deal is expected to close in the third calendar quarter of 2016.
Steve Milligan, chief executive officer, Western Digital, said- "This transformational acquisition aligns with our long-term strategy to be an innovative leader in the storage industry by providing compelling, high-quality products with leading technology. The combined company will be ideally positioned to capture the growth opportunities created by the rapidly evolving storage industry. I’m excited to welcome the SanDisk team as we look to create additional value for all of our stakeholders, including our customers, shareholders and employees."
Sanjay Mehrotra, president and chief executive officer, SanDisk, said- "Western Digital is globally recognized as a leading provider of storage solutions and has a 45-year legacy of developing and manufacturing cutting-edge solutions, making the company the ideal strategic partner for SanDisk. Importantly, this combination also creates an even stronger partner for our customers. Joining forces with Western Digital will enable the combined company to offer the broadest portfolio of industry-leading, innovative storage solutions to customers across a wide range of markets and applications."
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