SanDisk announced on Monday that it is going to acquire Pliant technology for approximately $327 million, a move that could enhance the flash memory chip maker’s ability to provide low power and faster storage facilities to corporate clients.
Following this announcement, SanDisk shares rose almost 7 percent, indicating strong support for the deal among the company's stakeholders. The deal will include cash payments and equity-based incentives.
Analysts, keeping a close eye on the deal, think that this acquisition will eventually boost SanDisk’s stake in the SSD Enterprise market.
According to a market assessment carried out by SanDisk, the enterprise SSD market is steadily rising and could eventually reach $4.2 billion within the next four years. It also said that this enormous growth will primarily be fuelled by the growing usage of the multi-level cell (MLC) NAND technology.
"We believe that the combination of Pliant's innovative technology and enterprise-level system expertise with SanDisk's high-quality, large-scale MLC memory production is a winning value proposition for customers," said SanDisk CEO Sanjay Mehrotra, XinHua English reports.
SanDisk expects the deal to be finalised by the end of their second fiscal quarter.