Western Digital simply purchased a bunch of memory playing cards. The storage big simply introduced that it has agreed to purchase SanDisk Corp for about $ 19 billion. This comes after hypothesis that SanDisk was looking for a purchaser.
The deal values SanDisk at $ 86.50 a share, which is a 15% premium on the day gone by’s closing price, giving the corporate a worth of $ 15.4 billion. SanDisk is presently up 4.78% in pre-market buying and selling.
This deal brings collectively two of the most important storage corporations. In some ways, SanDisk, with its deep funding in flash memory chips represents a future with out the spinning disk exhausting drives of Western Digital. But regardless of early explosive progress, SanDisk as of late reported outcomes which have lagged behind expectations. Likewise, Western Digital has watched its core enterprise slip away because the business strikes in the direction of flash memory.
SanDisk CEO Sanjay Mehrotra is predicted to hitch the Western Digital board upon the closing of the deal. Western Digital CEO Steve Milligan will proceed in that role.
Source : TechCrunch