SanDisk to Pay USD 1.1 Billion to Buy Fusion-io
Published By : 17 Jun 2014 | Published By : QYRESEARCH
SanDisk Corp. has announced that it will purchase Fusion-io Inc. in a USD 1.1 billion deal. This will make SanDisk the owner of the company that provides flas memory to tech giants such as Apple Inc. and Facebook Inc.
The deal is being executed via an all-cash offer, with the price per share being USD 11.25. This is 21% higher than the closing price of Fusion-io on June 13. This deal has received a nod from the boards, according to a statement issued by the companies today. As news of the deal became known, the shares of Fusion-io saw a spike above the offer price on the New York trading. This is a signal that some investors are anticipating the possibility of a counter-bid.
With this purchase, SanDisk - which is best known for its flash memory products for mobile devices - will now gain a stronger business opportunity in data centers as well. Over the past few years, there have been many reports about bids being made for the takeover of Fusion-io.
According to an analyst with Needham & Co, SanDisk was getting a good deal for the price it is paying.
Fusion-io was founded in 2005, and it is based on a business model that combines software and memory chips that help speed the rate of data access for computer servers. According to some reports, it is anticipated that the annual sales of data storage devices - such as the ones made by Fusion-io - could touch USD 7 billion by the end of 2017.