Western Digital announces acquisition of SanDisk

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Today Western Digital announced the acquisition of SanDisk. From the press release:

Western Digital® Corporation (NASDAQ: WDC) and SanDisk Corporation (NASDAQ: SNDK) today announced that they have entered into a definitive agreement under which Western Digital will acquire all of the outstanding shares of SanDisk for a combination of cash and stock. 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. If the previously announced investment in Western Digital by Unisplendour Corporation Limited closes prior to this acquisition, Western Digital will pay $85.10 per share in cash and 0.0176 shares of Western Digital common stock per share of SanDisk common stock; and if the Unisplendour transaction has not closed or has been terminated, $67.50 in cash and 0.2387 shares of Western Digital common stock per share of SanDisk common stock. The transaction has been approved by the boards of directors of both companies.

The combination is the next step in the transformation of Western Digital into a storage solutions company with global scale, extensive product and technology assets, and deep expertise in non-volatile memory (NVM). With this transaction, Western Digital will double its addressable market and expand its participation in higher-growth segments. SanDisk brings a 27-year history of innovation and expertise in NVM, systems solutions and manufacturing. The combination also enables Western Digital to vertically integrate into NAND, securing long-term access to solid state technology at lower cost.

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  • outkasted

    Holy CoW! Can we see the price of flash tech come on down.

    • Jeffry De Meyer

      No now WD will want to recover the price of their recent aquisition and prices will freeze like what is going on with magnetic storage because of “””””the flood”””””

    • fanboy fagz

      no, I highly doubt it. it may come down in a sale but it wont go down. if amd go out of business, do you think intel/nvidia prices will go down? it will go up slowly..

  • Kunzite

    Today? Is it still October 21, 2015?

  • SH*T666

    Their only business is making memory cards. Maybe a profitable acquisition, maybe a risky one.

    • Shutterbug

      SanDisk has quiete decent SSDs, which will fill up a huge hole in WDs portfolio.

      • SH*T666

        And make another big hole in their pockets… 19 billion dollars!

      • Chaitanya

        Its not just SSDs, but also big IP from all the patents that Sandisk might own related to Flash technology. Also Sandisk has a quite a decent presence in enterprise world with non-volatile storage portfolio.

  • johnny

    Sandisk is now a Chinese owned company. My last Sandisk Ultra 32G microsd was a disaster. Kingston is my favorite now.

    • Jeffry De Meyer

      kingston just buys nand chips, Toshiba, samsung, intel and micron are the big nand producers

      • Chaitanya

        Usually Kingston seems to get the 2nd grade bins from those manufacturers. As each of them have their own brands which means they get priority on binning of chips.

    • SH*T666

      Only 15% of the company is going to be Chinese now. If your Sandisk Ultra 32G is a disaster, put the blame on Americans.

  • Sakaphoto Graphics

    What, another name change coming for SanDisk’s SD Cards?

    I can’t keep up as to whether they’re Extreme Plus, Pixtor, or Extreme Pro that do 4K video. (It’s all of the above.)

    I’ve been wondering why SanDisk’s prices were still high when Lexar’s had dropped. I’m guessing that being owned by Micron has helped Lexar’s efficiency.

  • Nacho

    Nooooooooooo

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