Boston, MA 06\/17\/2014 (wallstreetpr) \u2013 According to recently published reports, SanDisk Corporation (NASDAQ:SNDK)<\/b> is all set to buy Fusion-IO, Inc.(NYSE:FIO)<\/b> in a few days time. The deal will cost around $1.1 billion to SNDK. The main objective of the company behind the buy-out deal is said to be improvement in its flash storage business.<\/p>\n
The timing of deal: <\/b><\/p>\n
The timing of deal is very interesting from SNDK’s point of view. FIO has not been doing good for last some time. It all started in 2011 when FIO decided to come up with its an IPO, unfortunately nothing went right and it had to bear a huge loss. At the same time\u00a0SanDisk Corporation (NASDAQ:SNDK) has been taking diverse steps to take its business on next level. It understands the true worth of FIO’s technology despite of its failure in recent past.<\/p>\n
These days SNDK is more active in making its own solid-state drives with the help of NAND memory chips. The flash storage business of company is way more profitable than its traditional business, hence SNDK doesn’t want to leave any stone unturned to make things better. Buying FIO is one of the steps that it has taken in recent past to improve the reach and efficiency of its flash storage business.<\/p>\n
According to Steven Fox, a Cross Research analyst, “SNDK has been trying to place itself more as an enterprise storage company for some time, and acquiring FIO puts it one step ahead in the same direction.”<\/p>\n
Most of the market experts are taking the SNDK vs FIO deal as a trend setter. Nowadays cheap maker companies are taking over smaller companies with expertise in certain technology to improve the efficiency of their business. The Chief Executive Officer of FIO said, “We have never bought chips from SanDisk in past, but after the deal we will buy.”\u00a0SanDisk Corporation (NASDAQ:SNDK) has made an offer of $11.25 per share to FIO which is 40% more than its last closing price, but lesser than the IPO price of $19.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/17\/2014 (wallstreetpr) \u2013 According to recently published reports, SanDisk Corporation (NASDAQ:SNDK) is all set to buy Fusion-IO, Inc.(NYSE:FIO) in a few days time. […]<\/p>\n","protected":false},"author":32,"featured_media":22369,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236,263],"tags":[3611,759,3612,3515],"stock_ticker":[],"class_list":["post-26070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-technology","tag-fusion-io-inc-nysefio","tag-nasdaqsndk","tag-nysefio","tag-sandisk-corporation-nasdaqsndk","entry"],"acf":[],"yoast_head":"\n