SanDisk to acquire Fusion-io for $1.1 billion

Written By Unknown on Senin, 16 Juni 2014 | 21.43

SanDisk is buying Fusion-io for about $1.1 billion to bulk up its flash storage business and reduce its exposure to the volatile memory chip market.

The company's offer of $11.25 per share represents a premium of 21% to Fusion-io's Friday close. Fusion-io's shares were trading at $11.61 before the bell on Monday, suggesting that some investors were expecting a higher offer for the company.

SanDisk's NAND flash memory chips are widely used in smartphones, cameras and other mobile devices to store music, pictures and other data.

However, the company is increasingly using its chips to build and sell its own solid-state drives, which offer higher profit margins, to companies and consumers. SanDisk's revenue from solid-state drives, or SSDs, jumped 61% in the first quarter, accounting for 28% of revenue.

The deal also makes the company less vulnerable to dramatic swings in prices of memory chips that have historically plagued the industry.

Fusion-io, which employs Apple co-founder Steve Wozniak as its chief scientist, has reported a loss for five quarters in a row.

SanDisk said it expects the deal, likely to close in the third quarter, to add to its adjusted profit in the second half of 2015.

http://timesofindia.indiatimes.com/followceleb.cms?alias=solid-state drives,Sandisk buying Fusion-io,Sandisk,Fusion-io


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