SanDisk Corporation (SNDK), Fusion-IO, Inc. (FIO) merging in $1.1 billion deal
Today SanDisk Corporation (NASDAQ:SNDK) announced today that it will be acquiring Fusion-IO, Inc. (NYSE:FIO) for $1.1 billion in an all-cash deal that values Fusion-io at $11.25 per share. SanDisk and Fusion-io both focus on the flash business. The deal represents a 21% premium over Fusion-io’s Friday closing price.
Fusion-io makes flash memory products that are used in data centers for large and small businesses. SanDisk makes flash memory cards like microSD cards that are used in smartphones and tablets.
“Fusion-io will accelerate our efforts to enable the flash-transformed data center, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership,” stated SanDisk CEO Sanjay Mehrotra.
The deal is expected to close in Q3 of SanDisk’s fiscal 2014. It will contribute to earnings in the second half of SanDisk’s fiscal 2015.
“This transaction represents a compelling opportunity for Fusion-io’s employees, customers and shareholders,” added Fusion-io CEO Shane Robison.