Western Digital announced today that it will acquire memory chip maker SanDisk for approximately $19 billion.
Western Digital will buy SanDisk for $86.50 a share in cash and stock, or about $19 billion. The offer represents a 15 per cent premium to SanDisk's closing price on Tuesday.
SanDisk shares rose 6.4 percent to $80 in premarket trading on the news, while Western Digital shares fell 1.1 percent to $74.
SanDisk approached Western Digital and Micron about a sale last week, the report said. Micron later pulled out of the talks, and Western Digital and SanDisk entered into separate negotiations.
SanDisk is one of the world's largest flash memory makers. Flash memory chips are used in storage systems for mobile devices and are increasingly being adopted by computers and data centers. The transaction is expected to close in the third quarter of 2016.
At the end of September, Unigroup announced that it would invest $3.8 billion (24 billion yuan) to acquire a stake in Western Digital, making it the largest shareholder of western Digital upon completion of the deal. (li Ming)
Founded in 1970, Western Digital Corp is one of the world's leading manufacturers of hard disk drives. Currently, it is headquartered in California, USA, with branches or offices around the world, providing memory products to users on five continents. For a long time, western digital has been committed to provide global PC users with the perfect storage solution, and as a global memory industry pioneer and leader for a long time, western digital for users and collection, management and use of digital information organization has rich service experience, also has a good reputation, especially in European and American markets. Western Digital used to be the world's number one hard drive manufacturer, but it was later overtaken by Seagate (STX), making it the world's number two hard drive manufacturer, but western Digital's hard drive products are still widely acclaimed around the world!
