When it comes to storage technology, we have companies like Western Digital, Seagate, and Sandisk just to name a few. Now Sandisk is a slightly different beast from Western Digital as the company is more known for their memory cards than hard drives. However it looks like the memory market just got smaller as Western Digital has announced their plans to acquire Sandisk for a whopping $19 billion.
This essentially puts Sandisk’s value-per-share at $86.50. Apparently this represents a 15% premium compared to the closing price from a day before, so Sandisk’s investors should be pretty happy with the price. Western Digital is expected to benefit with this acquisition, especially since these days more computer manufacturers are turning towards including SSDs in their builds, so by acquiring Sandisk, Western Digital can ensure that they continue to remain relevant.
According to Steve Milligan, the CEO of Western Digital, “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.” Sandisk’s CEO Sanjay Mehrotra is also expected to come on board Western Digital’s board upon the successful closure of the deal.