Western Digital Buys SanDisk


Western Digital, the world’s largest storage manufacturer, now officially owns SanDisk, a flash memory manufacturer. The deal closed at $19 billion, and Western Digital (WD) can now officially call SanDisk as its subsidiary. Western Digital recently announced that they have cleared all regulatory hurdles in the purchase, and the deal is now closed.

The agreement was initially announced in October last year for $19 billion. However, Western Digital faced a hard time buying SanDisk because a Chinese company Unisplendour, which agreed to buy 15% of the stock of Western Digital, backed off due to regulatory issues. Unisplendour was planned to buy 15% stock for $3.78 billion, and when the company backed up, Western Digital faced financial problems to raise $19 billion.

A sign is posted in front of the SanDisk headquarters on October 21, 2015 in Milpitas, California. Computer data storage company Western Digital announced plans to acquire flash memory storage maker SanDisk for $19 billion.

Western Digital proposed a new deal to buy SanDisk for $16 billion, but it was not successful. So, both the companies turned back to the original deal of $19 billion. The deal was finalised last month when more than 90% of the stockholders of Western Digital voted to approve the transaction. More than 98% of shareholders of SanDisk also approved the agreement.

Western Digital has been manufacturing hard discs for the computers and laptops only but with the purchase of SanDisk, WD can now build flash memory drives. This will enable WD to be competitive in the market. Western Digital is facing fierce competition from the market as Seagate is closing the gap with Western Digital. The buyout of SanDisk will enable Western Digital to stay ahead of Seagate and other competitors.

Reacting to the merger, SanDisk’s CEO Sanjay Mehrotra said that the merger with WD will enable the companies to “offer the broadest portfolio of industry-leading, innovative storage solutions to customers across a wide range of markets and applications.”

SanDisk’s CEO further said that his company; “looks forward to contributing to the success of Western Digital as it transforms into the leading storage solutions company.”

After purchasing the business, Western Digital is now being considered as the largest storage manufacturer both in hard discs and flash memory drives. Western Digital is not only gaining the flash memory technology but will also have access to the OEM memory components which SanDisk makes for Apple and Nvidia.

Western Digital’s CEO Steve Milligan said in a statement that, “This combination brings together two tremendous companies and cultures ideally positioned to capture the growth opportunities in our rapidly evolving industry.”