Hard disk drive maker Western Digital and memory chip maker SanDisk announced a formal agreement in which Western Digital will acquire SanDisk for $19 billion, in ?response to the explosion in data creation in the business world and among consumers, and the attendant need for more storage,? according to CNBC News.
Western Digital CEO Stephen Milligan told CNBC about the details of the acquisition of SanDisk. ?We want to make sure that we have the broadest set of storage devices in the industry. We want to make sure we?ve got the best technology, and we want to use that platform to create even more unique devices for our customers and add even more value,? he said.
?This transformation 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,? Milligan added. ?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.?
According to CNBC News, the cash-and-stock offer values SanDisk at $86.50 per share, making a total equity value of $19 billion, ?using a five-day volume-weighted average price? which ends on Oct. 20 with a $79.60 per share of Western Digital stock.
Milligan also stated how Western Digital is expected to finish the deal at the end of the third calendar quarter of 2016. ?We?re obviously going to look to close the transaction as quickly as we can,? he explained, ?but right now our current view is that because of the complexity and the size of the transaction, and the interactions that we?ll have to have with regulars across the globe, we?re targeting that the transaction will be cleared and closed in the third calendar quarter of ?16.?