Western Digital Corporation is announcing that it its wholly-owned subsidiary Western Digital Technologies has completed its acquisition of SanDisk Corporation. Acquiring SanDisk adds to Western Digital’s presence as a comprehensive storage solutions provider, furthering their global reach and extending their product and technology platforms, including ever-deeper expertise in both rotating magnetic storage and non-volatile memory (NVM).
According to Steve Milligan, chief executive officer of Western Digital, “Today is a significant day in the history of Western Digital. We are delighted to welcome SanDisk into the Western Digital family. This transformational combination creates a media-agnostic leader in storage technology with a robust portfolio of products and solutions that will address a wide range of applications in almost all of the world’s computing and mobile devices. We are excited to now begin focusing on the many opportunities before us, from leading innovation to bringing the best of what we can offer as a combined company to our customers. In addition, we will begin the work to fully realize the value of this combination through executing our synergies, generating significant cash flow, as well as rapidly deleveraging our balance sheet, and creating significant long-term value for our shareholders.”
Western Digital also notes that the debt financing required for this transaction has been consummated, and the previously obtained funds from this financing have been released from escrow to Western Digital Technologies, Inc.. Integration is to begin immediately through joint efforts of teams from both Western Digital and SanDisk. As has been previously reported, Steve Milligan will continue to serve as chief executive officer of Western Digital, which will remain at their current headquarters in Irvine, California.
Effective immediately, Sanjay Mehrotra, co-founder and president and chief executive officer of SanDisk, will serve as a member of the Western Digital Board of Directors. Sanjay states that “As a combined company, we will be best positioned to address the demands for data storage, which is growing exponentially every year. Growth and change go hand in hand, and we couldn’t be happier to grow and change together with Western Digital. I look forward to contributing to realizing the potential of this combination as a member of the board.”
Under the acquisition’s transaction terms, each outstanding share of SanDisk common stock was converted into the right to receive $67.50 per share in cash and 0.2387 shares of Western Digital common stock. You can view SanDisk’s version of the press release announcing completion of the acquisition here; and Western Digital’s version here.