Hot on the heels of the “largest tech acquisition in history” comes another shocker. Western Digital or simply WD a brand popular for its range of hard drives, both internal and external recently announced that they are in the process of acquiring flash memory storage company SanDisk. For how much you ask? A whopping $19 billion.
According to sources, the deal works out to $86.50 per share and thus adds up to a total of $19 billion. Headquartered in California, both companies have been in the storage business for decades. In fact, SanDisk was even a long-time partner of Toshiba, a direct competitor to Western Digital.
Western Digital expects the deal to be done and dusted by the third quarter of 2016. To some, the deal comes as no surprise in fact. If you think about it, both companies operate in the same sphere. So it’s like one of the largest hard companies acquires one of the largest flash storage companies to create an even larger super company.
Steve Milligan, CEO of Western Digital explained that the transformational acquisition aligns with the company’s long-term strategy to be an innovative leader in the storage industry by providing high-quality products with cutting-edge technology. Essentially, the combined company will be ideally positioned to capture the growth opportunities created by the rapidly evolving storage industry.
As such, Milligan will remain in position as head of the joint company, while Sanjay Mehrotra, CEO of SanDisk is touted to join the board of directors.
It should be noted that on a sheer scale, this acquisition falls to second place behind Dell acquiring EMC for a mind blowing $67 billion, thus making it the biggest all-tech acquisition ever. The Western Digital/Sandisk deal is on par with Facebook’s acquisition of WhatsApp which again was $19 Billion.