Western Digital Corporation, popular manufacturer of storage solutions just announced it will acquire SanDisk Corporation, global leader in flash storage solutions for a combination of cash and stock of approximately $19 billion. “With this transaction, Western Digital will double its addressable market and expand its participation in higher-growth segments,” said the company.
It also said that the long term joint venture (JV) with Toshiba that provides stable NAND supply will be ongoing. Steve Milligan will continue to serve as chief executive officer of the combined company, upon closing, 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.
The deal is expected to close in the third calendar quarter of 2016.
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.