In an effort that may create a storage big, Western Digital has formally completed its purchase of SanDisk. The deal was initially introduced in late 2015, carrying a complete worth of about $19 billion. Based on a report from The Verge, nevertheless, that quantity was lowered to $16 billion after Chinese language agency Unisplendour backed out on its plans to buy a 15% stake in Western Digital.
Regardless of the way you slice it, the mixed may of Western Digital and SanDisk is sort of the proposition. Each are large names within the storage market, and the merger will permit Western Digital so as to add SanDisk’s experience with producing strong state drives and SD storage options to its personal slate of arduous drive choices.
Western Digital Completes Acquisition of SanDisk, Creating A International chief In Storage Know-how
IRVINE, Calif. — Might 12, 2016 — Western Digital® Company (NASDAQ: WDC) immediately introduced that its wholly-owned subsidiary Western Digital Applied sciences, Inc. has accomplished the acquisition of SanDisk Company (NASDAQ: SNDK). The addition of SanDisk makes Western Digital Company a complete storage options supplier with international attain, and an in depth product and know-how platform that features deep experience in each rotating magnetic storage and non-volatile reminiscence (NVM).
The Firm additionally indicated that the debt financing related to this transaction has been consummated and that the beforehand obtained funds from this financing have been launched from escrow to Western Digital Applied sciences, Inc.
“Right now is a big day within the historical past of Western Digital,” stated Steve Milligan, chief government officer of Western Digital. “We’re delighted to welcome SanDisk into the Western Digital household. This transformational mixture creates a media-agnostic chief in storage know-how with a strong portfolio of merchandise and options that may tackle a variety of purposes in virtually all the world’s computing and cellular units. We’re excited to now start specializing in the various alternatives earlier than us, from main innovation to bringing the perfect of what we will supply as a mixed firm to our clients. As well as, we’ll start the work to completely understand the worth of this mix by means of executing on our synergies, producing vital money movement, in addition to quickly deleveraging our stability sheet, and creating vital long-term worth for our shareholders.”
The mixing course of will start instantly by means of the joint efforts of groups from each corporations. As beforehand introduced, Steve Milligan will proceed to function chief government officer of Western Digital, which can stay headquartered in Irvine, California. Sanjay Mehrotra, co-founder, president and chief government officer of SanDisk, will function a member of the Western Digital Board of Administrators, efficient instantly.
“As a mixed firm, we might be greatest positioned to deal with the calls for for knowledge storage, which is rising exponentially yearly,” stated Sanjay Mehrotra. “Progress and alter go hand in hand, and we could not be happier to develop and alter along with Western Digital. I look ahead to contributing to realizing the potential of this mix as a member of the board.”
Beneath the phrases of the transaction, every excellent share of SanDisk widespread inventory was transformed into the best to obtain $67.50 per share in money and zero.2387 shares of Western Digital widespread inventory.
SanDisk shareholders in search of info with regard to the cost of the merger consideration ought to evaluate the Public FAQ obtainable within the Investor Relations part of our web site at investor.wdc.com or click on right here.
About Western Digital
Western Digital Company (NASDAQ: WDC) is an industry-leading supplier of storage applied sciences and options that allow individuals to create, leverage, expertise and protect knowledge. The corporate addresses ever-changing market wants by offering a full portfolio of compelling, high-quality storage options with customer-focused innovation, excessive effectivity, flexibility and velocity. Our merchandise are marketed underneath the HGST, SanDisk and WD manufacturers to OEMs, distributors, resellers, cloud infrastructure suppliers and shoppers. For extra info, please go to www.hgst.com, www.wd.com, and www.sandisk.com.
Ahead-Wanting Statements
Statements contained on this press launch that confer with future occasions or different non-historical details are forward-looking statements that mirror Western Digital Company’s (“Western Digital”) present perspective of present developments and knowledge as of the date of this launch. Besides as expressly required by regulation, Western Digital disclaims any intent or obligation to replace these forward-looking statements. Precise outcomes might differ materially from Western Digital’s present expectations relying upon various elements affecting Western Digital’s enterprise. These elements embrace, amongst others, the impression of aggressive merchandise and pricing; market acceptance of and continued demand for Western Digital’s merchandise; dangers related to acquisitions, mergers and joint ventures; difficulties or delays in manufacturing; and different dangers and uncertainties detailed in Western Digital’s periodic public filings with the Securities and Change Fee, together with however not restricted to Western Digital’s most up-to-date Annual Report on Type 10-Okay. Besides as expressly required by regulation, Western Digital disclaims any intent or obligation to replace these forward-looking statements.