Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > Memory/Storage
?
?
Memory/Storage??

Western Digital to buy SanDisk for $19 billion

Posted: 23 Oct 2015 ?? ?Print Version ?Bookmark and Share

Keywords:magnetic disc? solid-state drive? flash memory?

Western Digital, manufacturer of magnetic disc and solid-state drives, will buy SanDisk for $19 billion.

It had been previously reported that SanDisk was up for sale and the Western Digital offer of $86.50 per share is made up of $67.50 in cash and the remainder made up in Western Digital stock.

Western Digital is in the process of selling a 15 per cent stake in itself to Chinese state-controlled Unisplendor Corp. Ltd for $3.775 billion. The company said that if the investment closes prior to the acquisition of SanDisk, Western Digital would pay $85.10 in cash and the remainder in share in the company.

SanDisk has been a successful vendor of flash memory for computer peripheral markets, and to ensure supply entered into a manufacturing joint venture with Toshiba Corp. However, both SanDisk and Toshiba now lie behind South Korean competitors Samsung and SK Hynix as volume manufacturers and face the cost of gearing up for a transition to 3D production of memory.

Toshiba has been hit by the financial scandal that it lied about its financial position for over seven years by about $1.9 billion, which caused the resignation of its CEO.

Western Digital said the manufacturing joint venture with Toshiba will continue and will be able to provide 3D NAND "at scale." For Western Digital this provides an internal supply of NAND flash at a time when personal computers are turning to solid-state drives and tablet computers and smartphones predominantly use non-volatile memory.

"The combination enables Western Digital to vertically integrate into NAND, securing long-term access to solid state technology at lower cost," Western Digital said in a statement.

Steve Milligan, CEO of Western Digital, will continue to serve as CEO of the combined company. Upon closing, Sanjay Mehrotra, CEO of SanDisk, is expected to join the Western Digital board of directors.

The transaction is subject to approval by SanDisk shareholders and, in the event that the Unisplendor transaction does not close, Western Digital shareholders, receipt of regulatory approvals and other customary closing conditions. The transaction is expected to close in the third calendar quarter of 2016.

- Peter Clarke
??EE Times Europe





Article Comments - Western Digital to buy SanDisk for $...
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top