SanDisk has agreed a $1.1bn (£647m) all-cash deal to acquire fellow flash storage player Fusion-io.
The acquisition will see SanDisk commencing a tender offer for all outstanding stock in Fusion-io that values the San Jose-based outfit's shares at $11.25 each. The buyout is being funded purely from available cash on the vendor's balance sheet. Both boards of directors have given the deal the green light, and it is now subject to customary closing conditions.
The buyout is forecast to close during 2014's third quarter, and SanDisk anticipates that the new addition will begin boosting its earnings during the second half of next year.
"Fusion-io will accelerate our efforts to enable the flash-transformed datacentre, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership," said SanDisk chief executive Sanjay Mehrotra. "Customers will benefit from the addition of Fusion-io's leading PCIe solutions to SanDisk's vertically integrated business model."
Fusion-io chief executive Shane Robison added: "This transaction represents a compelling opportunity for Fusion-io's employees, customers and shareholders. 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."
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