SanDisk acquires Fusion-io in $1.1bn deal
June 17, 2014 // 8:54 a.m.
Companies: #fusion-io #sandisk
Flash drive manufacturer SanDisk is acquiring flash-based PCIe hardware and software specialist Fusion-io in a deal worth approximately $1.1bn.
SanDisk is making the deal to help solidify its position in the enterprise datacenter market. Company president and chief executive Sanjay Mehrotra says that SanDisk’s long term aim is to replace traditional datacenter storage solutions with the flash-based infrastructure that it specialises in, which should increase efficiency and lower the cost of ownership of such centres.
‘Fusion-io will accelerate our efforts to enable the flash-transformed datacenter, helping companies better manage increasingly heavy data workloads,’ said Mehrota.
Tech research firm Gartner ranks Fusion-io as fifth in the enterprise SSD market with SanDisk ahead of it in fourth place. The Fusion acquisition would also bolster SanDisk's PCIe offering which Gartner points out is currently limited.
Fusion-io does have a very attractive client portfolio at present with big names including Apple and Facebook which could be another reason SanDisk has sought to strike this deal.
’Fusion-io’s innovative hardware and software solutions will be augmented by SanDisk’s worldwide scale and vertical integration, enabling a combined company that can offer an even more compelling value proposition for customers and partners,’ said Fusion-io chief executive Shane Robinson.
SanDisk is paying $11.25 a share for the company and will fund the deal through its balance sheet. The boards of both companies are in favour of the deal which is pending regulatory approval and expected to close by the end of the year.
Industry commentators suggest that this deal could inspire further consolidations between major players in the enterprise datacenter market in the near future.