Western Digital Corporation just announced that, they will acquire SanDisk Corporation at an approximate price of $19 billion. If you do not know, Western Digital Corporation is is the world’s most popular manufacturer of storage solutions while the SanDisk is the global leader in flash storage solutions. The acquisition is in combination of cash & stock. According to company, “With this transaction, Western Digital will double its addressable market and expand its participation in higher-growth segments.”
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.”
The deal is expected to close in the third calendar quarter of 2016 and Steve Milligan will continue to serve as chief executive officer of the combined company, upon closing. The current president and chief executive officer of SanDisk, Sanjay Mehrotra is expected to join the Western Digital Board of Directors. The company will remain headquartered in Irvine, California.