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Western Digital buys SanDisk for £12.3bn

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 (opens in new tab) 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).

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.