Update: SanDisk agrees to pay $1.1 billion flash storage maker Fusion-io
The deal will help customers manage heavy workloads, says SanDisk CEO
IDG News Service - SanDisk is looking to shore up its position in the enterprise flash storage market by purchasing Fusion-io for $1.1 billion in an all-cash deal.
The acquisition, which was announced Monday, is expected to close in SanDisk's third fiscal quarter.
"Fusion-io will accelerate our efforts to enable the flash-transformed data center, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership," SanDisk CEO Sanjay Mehrotra said in a statement.
Fusion-io's chief scientist is Apple co-founder Steve Wozniak. Since undergoing a high-profile IPO in 2011, the company has had mixed financial performance, in part due to a reported over-reliance on a number of large customers, including Apple and Facebook.
The $1.1 billion price tag for Fusion-io is "within the range of market premiums," SanDisk CFO Judy Bruner said during a conference call on Monday, while acknowledging that Fusion-io's stock has been "relatively volatile" of late.
SanDisk's scale of operations and vertically integrated technology approach should help it boost sales of Fusion-io products quickly, Mehrotra said during the call.
Fusion-io is known for its PCIe solid-state technology. SanDisk has been working on its own PCIe products and will continue to "put the pedal to the metal" on that effort, Mehrotra said, although presumably the acquisition will help it lower its overall research and development costs in this area. It also intends to continue develop ULLtraDimm SSDs for customers and workloads that require the lowest latency, he said.
Overall, the combined company should be "very well received," since it will be able to meet the performance, cost and reliability expectations of a wide variety of customers, he added.
More details about product road maps will be shared after the deal's close, Bruner and Mehrotra said.
- How a private Dell works with customers, and sees its rivals
- Update: SanDisk agrees to pay $1.1 billion flash storage maker Fusion-io
- CompTIA now offers its research without charge
- Microsoft's new CEO and his first-100-days plan
- Personal history may thrust new Microsoft CEO into visa debate
- As Dell cuts, Apple adds jobs in Austin
- Dell cuts 'small percentage' of workforce
- Lenovo's Motorola, IBM server buys will likely get strict U.S. security review
- Welcome to the era of radical innovation
- China passes Japan to become world's 2nd largest IT market
- What is this "File Sync" Thing and Why Should I Care About It? All of a sudden, getting a file from your work laptop to your iPad became as simple as clicking "Save." So it's no...
- The Keys to Securing Data in a Collaborative Workplace Losing data is costly. IT professionals have spent years learning how to protect their organizations from hackers, but how do you ward off...
- Cloud-to-Cloud Backup Case Study: AMAG Pharmaceuticals As an IT pioneer in the pharmaceuticals industry, AMAG realized that SaaS backup and recovery would give them the confidence to fully embrace...
- 9 Essentials for a Complete Cloud-to-Cloud Backup Solution In 9 Essentials for a Complete Cloud-to-Cloud Backup Solution, we'll walk you through potential sources of data loss in the cloud and provide...
- The Key to Happiness: Throw out Your Data Warehouse In this webinar, Kerry Reitnauer, Director, Solution Architect at FairPoint Communications will discuss the challenges the data warehouse brought, how they migrated to...
- The Foundation You Need to Build a Better Storage Infrastructure Watch this webcast to hear how you can maximize the economics of your data center by modifying your storage footprint and power usage... All Data Storage White Papers | Webcasts