Data storage company Western Digital is acquiring another data storage company, SanDisk, thus creating a true behemoth in the industry.
The news was confirmed in the Western Digital newsroom on Wednesday.
According to the press release, Western Digital had to shell out $19 billion (£12.3bn) for the acquisition, which means SanDisk's stock is worth $86.50 per share (£55.9).
Western Digital is an American data storage company creating non-volatile memory (NVM), with the focus on hard-disk drives (HHD). SanDisk, on the other hand, focuses on flash memory, something we've seen grow in popularity over the past few years, especially with the increased availability of the fast solid-state drives (SSD).
"This transformational acquisition aligns with our long-term strategy to be an innovative leader in the storage industry by providing compelling, high-quality products with leading technology," said Steve Milligan, chief executive officer of Western Digital. "The combined company will be ideally positioned to capture the growth opportunities created by the rapidly evolving storage industry. I'm excited to welcome the SanDisk team as we look to create additional value for all of our stakeholders, including our customers, shareholders and employees."
Steve Milligan will continue to serve as chief executive officer of the combined company, and the company will remain headquartered in Irvine, California. Upon closing, Sanjay Mehrotra is expected to join the Western Digital Board of Directors, the company stated in the press release.
The transaction will be financed by a mix of cash, new debt financing and Western Digital stock. In connection with the transaction, Western Digital expects to enter into new debt facilities totaling $18.4 billion (£11.9bn).