SanDisk to acquire Fusion-io
Deal will make vendor to become enterprise flash storage provider
Flash storage technology developer SanDisk is planning to acquire Fusion-io, a move that will give SanDisk a strong flash-based PCIe hardware and software portfolio and will help speed up the continuing consolidation in the flash storage industry.
SanDisk will pay about $1.1bn, after accounting, for Fusion-io's cash on hand, in an all-cash transaction that values Fusion-io at $11.25 per share.
With the acquisition, SanDisk will solidify its position as a major consolidator in the flash storage market. In particular, SanDisk will get access to both Fusion-io's ioControl hybrid flash and disk array and its ION Accelerator all-flash appliance for application acceleration.
"Fusion-io will accelerate our efforts to enable the flash-transformed data centre, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership," said Sanjay Mehrotra, SanDisk president and CEO. "Customers will benefit from the addition of Fusion-io's leading PCIe solutions to SanDisk's vertically integrated business model. We look forward to working with the world-class engineering and go-to-market teams from Fusion-io to provide high-value solutions to customers around the world."
SanDisk said it will fund the acquisition with cash available on its balance sheet. The transaction, which has been approved by the boards of directors of both companies, is subject to customary closing conditions, including clearance from relevant regulatory authorities and the completion of the tender offer.
"This transaction represents a compelling opportunity for Fusion-io's employees, customers and shareholders," said Shane Robison, chairman and CEO of Fusion-io. "Fusion-io's innovative hardware and software solutions will be augmented by SanDisk's worldwide scale and vertical integration, enabling a combined company that can offer an even more compelling value proposition for customers and partners."