Western Digital has agreed to acquire Sandisk for $19 Billion, this will combine two of the largest storage providers in the world. This agreement, which was announced earlier today.
“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.”
“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,”
This merger between two companies opens up a lot of possibilities for both companies for the future, given Western Digital’s reputation in the hard drive market and Sandisk’s memory/flash chip production. We can expected whole range of new products.