IRVINE, Calif.—The data storage landscape just got significantly smaller.
Long-time hard drive maker, Western Digital Corp., has announced it will buy SanDisk Corp. for US$19 billion. A combination of cash and stock, the deal values the flash memory-focused company at $86.50 per share.
“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,” Steve Milligan, CEO of Western Digital, said.
“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,” he added.
Western Digital said the acquisition is the next step in the company’s transformation into a storage solutions company with global scale, assets and a deep expertise in non-volatile memory. Meanwhile, industry trends toward mobile devices and cloud computing are squeezing the traditional market for consumer hard drives.
“With this transaction, Western Digital will double its addressable market and expand its participation in higher-growth segments,” the company said.
Western Digital added it and SanDisk’s product lines complement each other well, and will “provide the foundation for a broader set of products and technologies from consumer to datacenter.”
Sandisk’s president and CEO, Sanjay Mehrotra, is expected to join the board of Western Digital, while Sandisk’s long-term partnership with Toshiba will be ongoing.
The deal subject to customary conditions and expected to close by the third quarter of 2016.