Boston, MA 06/17/2014 (wallstreetpr) – SanDisk Corporation (NASDAQ:SNDK) on June 16, 2014 announced that it signed a definitive agreement for acquisition of Fusion-io (NYSE:FIO). The process of acquisition will be completed in all-cash transaction and the value of the deal is approximately $1.1 billion.
Terms Of Agreement
- As per the signed agreement, SanDisk will start a tender offer for Fusion-io’s outstanding shares at the cost of $11.25 per share in cash.
- According to the agreement, SanDisk will acquire the company with the cash available with it on company’s balance sheet.
- The transaction has been given approval by the Boards of both the companies.
- The deal, as per the agreement, is subject to the customary closing conditions, which also includes clearance to be received from the regulatory authorities associated with the deal.
- The transaction is expected to be closed by Q3 2014 of SanDisk. It will be accretive to non-GAAP earnings in 2015 fiscal year’s second half of SanDisk.
Statement From The President And CEO Of Sandisk
The President and CEO of SanDisk Corporation (NASDAQ: SNDK), Sanjay Mehrotra said that Fusion-io (NYSE:FIO) will help in acceleration of the company’s efforts to enable flash-transformed data center, which in turn would help in managing the heavy data workloads in a better manner while also bringing down the overall cost of ownership. He added that the customers will be able to enjoy the Fusion-io’s leading PCIe solutions benefits as well.
Statement From The Chairman And CEO Of Fusion-Io
The Chairman and CEO of Fusion-io (NYSE:FIO), Shane Robison said that the transaction was a representation of compelling opportunity for the employees of his company. The acquisition deal brought along a number of opportunities for the customers as well as shareholders of the company as well. He added that the hardware as well as software solutions of his company will be enhanced by the worldwide scale and vertical integration of SanDisk Corporation (NASDAQ: SNDK); which would allow the combined company to deliver compelling value proposition to partners as well as customers.
