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.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments