Western Digital are expected to announce the acquisition of the device and server storage giant SanDisk in a cash and stocks deal that is expected to cost the former $19bn.
It’s certainly been a busy few weeks in terms of major tech acquisitions, with this SanDisk announcement following hot on the tail of the largest tech acquisition ever, which saw Dell purchase EMC for $67bn.
Now, according to The Wall Street Journal, SanDisk has found itself a buyer after spending some time recently on the hunt for someone to take up its business.
Both companies have become synonymous with portable storage devices, but it is believed that Western Digital felt that the acquisition could be used to boost its flagging hard-disk drive and solid-state drives (SSDs) businesses.
Likewise, SanDisk has seen its own business flag due to the decreasing demand for its memory cards for smartphones as companies, including Samsung, begin to move away from allowing for expandable memory.
It also wasn’t helped by Apple’s decision to turn to Samsung’s own SSDs ahead of SanDisk’s.
Western Digital has said that, upon completion, the deal will likely add earnings in the first 12 months and will reach annual synergies of $500m within 18 months.
In terms of how the board will change following the acquisition, SanDisk’s CEO Sanjay Mehrotra will join the Western Digital board, with Western Digital’s CEO Steve Milligan continuing in his position.
SanDisk cards image via Shutterstock