Thursday, March 17, 2016
In a deal that combines a traditional disk drive storage maker with a Silicon Valley flash memory pioneer, shareholders of Western Digital and SanDisk approved a $17 billion merger Tuesday.
The acquisition by Western Digital is expected to help the two companies compete in a market that is seeing major consolidations like the $67 billion merger of Dell with IT and storage giant EMC.
Western Digital shareholders voted to issue new stock to finance the acquisition. The transaction is expected to close in the second quarter of this year, the Irvine-based company said in a news release.
SanDisk, a flash memory company based in Milpitas that employs more than 8,000 globally, said in its own release that 98 percent of its shareholders approved the deal.
"The combination of SanDisk 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," said Sanjay Mehrotra, president and chief executive of SanDisk.
Western Digital CEO Steve Milligan said the merger "brings together two tremendous companies and cultures ideally positioned to capture the growth opportunities in our rapidly evolving industry."
The acquisition by Western Digital has had its ups and downs.
Last year, China's Unisplendour agreed to buy 15 percent of Western Digital stock for $3.78 billion, as long as the investment would receive U.S. regulatory approval.
By: DocMemory
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