Flash storage company SanDisk announced today that it has entered into an agreement to acquire flash technology company Fusion-io. The cash deal will see the flash enterprise company enhance SanDisk's business ventures, adding flash memory and storage hardware to SanDisk's existing products. The deal was made for a reported $1.1 billion.
SanDisk said that the deal is expected to close sometime in the third quarter of the 2014 fiscal year. It is expected to bolster earnings in the second quarter of the next fiscal year. Boards from both companies approved the deal, but it still has to make it through regulatory approval.
Fusion-io has been one of the bigger names in enterprise level solid state storage, thanks to a number of high-profile deals and hires. Apple co-founder Steve Wozniak has served as the chief scientist for the company since 2008. Facebook and Apple also use Fusion-io's enterprise products to power their data centers.
Revenues for Fusion-io rose to $432.4 million in 2013, a gain of 20 percent from 2012. The third quarter for the 2014 fiscal year recorded revenues of $100.5 million, a gain of $12.8 million over the same quarter in the previous year. The company had recently announced collaborations with HP, Microsoft and Oracle for various optimizations and product deals.
"Fusion-io will accelerate our efforts to enable the flash-transformed data center, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership," said SanDisk CEO Sanjay Mehrotra. "Customers will benefit from the addition of Fusion-io's leading PCIe solutions to SanDisk's vertically-integrated business model. We look forward to working with the world-class engineering and go-to-market teams from Fusion-io to provide high-value solutions to customers around the world."
Details of the acquisition puts the purchase price at $11.25 per outstanding share. The agreed-upon price is a 20 percent premium over Friday's closing price. SanDisk will fund the endeavor from its available cash, rather than turning to outside funding.
"This transaction represents a compelling opportunity for Fusion-io's employees, customers and shareholders," said Fusion-io CEO Shane Robison. "Fusion-io's innovative hardware and software solutions will be augmented by SanDisk's worldwide scale and vertical integration, enabling a combined company that can offer an even more compelling value proposition for customers and partners."
The joint statement from the companies made no mention of how Fusion-io would be organized within SanDisk.