Update: The transaction has closed at a price of $16 billion. Chinese company Unisplendour had originally decided to buy into 15 percent of SanDisk, but pulled out of the deal in February, resulting in the lowered final price.
Our original story is below.
There’s a lot of bank to made in this memory deal.
Western Digital has agreed to buy competitor SanDisk for a total of $19 billion. The acquisition combines two of the largest companies that produce non-volatile memory solutions. Western Digital, which primarily produces hard disk drives, is hoping to grab onto SanDisk’s lead in solid-state technology and microSD cards.
The two have more than 15,000 patents issued or pending. SanDisk will continue to collaborate with Toshiba for vertically-integrated storage solutions. Toshiba has provided NAND flash storage for Apple’s iPhones.
Samsung, one of the leading mobile NAND chipmakers, attempted to acquire SanDisk back in 2008, but US regulators stopped the deal. The Western Digital deal seems to be faring better with government agencies this time around.
If SanDisk sharesholders approve of the deal, the acquisition will close in the third quarter.