Menu
Western Digital to buy Sandisk for US$19B

Western Digital to buy Sandisk for US$19B

The deal will give WD a way forward as buyers switch from hard disks to solid state drives

Western Digital has agreed to buy SanDisk for around US$19 billion in cash and stock.

The deal, approved by the boards of both companies, will create a storage giant with expertise in hard disks and flash memory, assuring the future of WD as its traditional business of spinning disks is gradually replaced by solid-state chips.

WD has recent experience of big mergers, having acquired hard disk rival Hitachi Global Storage Technologies in a $3.9 billion deal. Although the deal closed in March 2012, the companies still operate under two separate brands, WD and HGST. However, that may change following approval from China's Ministry of Commerce (MOFCOM) for the companies to more of the two businesses.

SanDisk and WD are already partners: in 2013 they collaborated on a hybrid drive combining a hard disk with solid-state storage.

The WD-SanDisk deal will create a storage business with a giant patent pool -- together, the companies have 15,000 patents granted or pending, according to WD.

WD will offer SanDisk CEO and co-founder Sanjay Mehrotra a seat on its board, while WD CEO Steve Milligan will lead the merged company.

The companies expect to make $500 million in cost savings annually once the deal closes, something they expect to take up to 12 months, they said Wednesday.

SanDisk plans to continue its joint venture NAND flash manufacturing partnership with Toshiba following the deal. On Tuesday, the companies said they had started installing equipment at their new Fab 2 facility in Yokkaichi, Japan. They expect to begin producing 3D flash chips there in the first quarter next year.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Featured

Slideshows

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

​Ingram Micro’s Hooked on Lenovo incentive programme recently rewarded 28 of New Zealand's top performing resellers with a full-on fishing trip at Great Barrier Island for the third year​ in a row.

Tight lines as Hooked on Lenovo catches up at Great Barrier Island
Inside the AWS Summit in Sydney

Inside the AWS Summit in Sydney

As the dust settles on the 2017 AWS Summit in Sydney, ARN looks back an action packed two-day event, covering global keynote presentations, 80 breakout sessions on the latest technology solutions, and channel focused tracks involving local cloud stories and insights.

Inside the AWS Summit in Sydney
Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Ingram Micro hosted its third annual Cure Kids Charity Golf Tournament at the North Shore Golf Club in Auckland. In total, 131 resellers, vendors and Ingram Micro suppliers enjoyed a round of golf consisting of challenges on each of the 18 sponsored holes, with Team Philips taking out the top honours.

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day
Show Comments