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Western Digital finalizes $16 billion SanDisk acquisition

In an effort that will create a storage giant, Western Digital has officially completed its purchase of SanDisk (opens in new tab). The deal was originally announced in late 2015, carrying a total value of about $19 billion. According to a report from The Verge, however, that amount was lowered to $16 billion after Chinese firm Unisplendour backed out on its plans to purchase a 15% stake in Western Digital.

No matter how you slice it, the combined might of Western Digital and SanDisk is quite the proposition. Both are huge names in the storage market, and the merger will allow Western Digital to add SanDisk's expertise with producing solid state drives and SD storage solutions to its own slate of hard drive offerings.

Press Release

Western Digital Completes Acquisition of SanDisk, Creating A Global leader In Storage Technology

IRVINE, Calif. — May 12, 2016 — Western Digital® Corporation (NASDAQ: WDC) today announced that its wholly-owned subsidiary Western Digital Technologies, Inc. has completed the acquisition of SanDisk Corporation (NASDAQ: SNDK). The addition of SanDisk makes Western Digital Corporation a comprehensive storage solutions provider with global reach, and an extensive product and technology platform that includes deep expertise in both rotating magnetic storage and non-volatile memory (NVM).

The Company also indicated that the debt financing associated with this transaction has been consummated and that the previously obtained funds from this financing have been released from escrow to Western Digital Technologies, Inc.

"Today is a significant day in the history of Western Digital," said Steve Milligan, chief executive officer 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 on our synergies, generating significant cash flow, as well as rapidly deleveraging our balance sheet, and creating significant long-term value for our shareholders."

The integration process will begin immediately through the joint efforts of teams from both companies. As previously announced, Steve Milligan will continue to serve as chief executive officer of Western Digital, which will remain headquartered in Irvine, California. Sanjay Mehrotra, co-founder, president and chief executive officer of SanDisk, will serve as a member of the Western Digital Board of Directors, effective immediately.

"As a combined company, we will be best positioned to address the demands for data storage, which is growing exponentially every year," said Sanjay Mehrotra. "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 terms of the transaction, 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.

SanDisk shareholders looking for information with regard to the payment of the merger consideration should review the Public FAQ available in the Investor Relations section of our website at investor.wdc.com or click here.

About Western Digital

Western Digital Corporation (NASDAQ: WDC) is an industry-leading provider of storage technologies and solutions that enable people to create, leverage, experience and preserve data. The company addresses ever-changing market needs by providing a full portfolio of compelling, high-quality storage solutions with customer-focused innovation, high efficiency, flexibility and speed. Our products are marketed under the HGST, SanDisk and WD brands to OEMs, distributors, resellers, cloud infrastructure providers and consumers. For more information, please visit www.hgst.com, www.wd.com, and www.sandisk.com.

Forward-Looking Statements

Statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Western Digital Corporation's ("Western Digital") current perspective of existing trends and information as of the date of this release. Except as expressly required by law, Western Digital disclaims any intent or obligation to update these forward-looking statements. Actual results may differ materially from Western Digital's current expectations depending upon a number of factors affecting Western Digital's business. These factors include, among others, the impact of competitive products and pricing; market acceptance of and continued demand for Western Digital's products; risks associated with acquisitions, mergers and joint ventures; difficulties or delays in manufacturing; and other risks and uncertainties detailed in Western Digital's periodic public filings with the Securities and Exchange Commission, including but not limited to Western Digital's most recent Annual Report on Form 10-K. Except as expressly required by law, Western Digital disclaims any intent or obligation to update these forward-looking statements.

36 Comments
  • SanDisk worth more than Nokia and Motorola combined? That's crazy. Never realized they were worth that much. Posted via Galaxy S7 edge
  • Bear in mind that was only the mobile arms of Motorola and Nokia, and sandisk hold some incredibly valuable patents. It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • Damn. That is ridiculous! Nice way of putting it into perspective. How's that edge BTW? I'm waiting on the Note 6, kind of tired of Nexus... Want something different. Posted via the Android Central App
  • Love the hardware. Not that crazy about TW. Considering trading for HTC 10. Posted via Galaxy S7 edge
  • True. Nexus is good for updates, but not really much else. I went from a Note 2 to a Nexus 5. Hooray for updates, but I missed the software features in the Note family. Got rid of the Nexus, and went to a Note 4. Looking at the possible rumors of the Note 6, I can say I'm done with the Note family now. I like the S-Pen, but I want something bigger. The Note family has been on 5.7" screens for 3 iterations, and the GN6 is rumored to only have a 0.1" increase. That's total bs, imo. I've been following the Xiaomi Mi Max and will hopefully have a way to purchase it by the end of May (sale of stock for the lowest option is May 17th while the other 2 versions don't have a SoS date yet; translated from their website). The version I want has 4GB RAM with 128GB internal storage w/microSD support. The battery is a big 4850mAh, and the screen size is a lovely 6.44". It has a 652 cpu which is mid-tier, but I can deal with that. The Note 6 won't come even close to that besides probably having a 823 (with the Lite version being rumored w/a 820). I can take a hit on the cpu side because all the other specs of the Max is what I want.
  • Don't forget WhattsApp!
  • It's about time WD hit into flash really, hard disc drives aren't exactly a growth industry. It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • Well hdds are more capable of higher capacities as it stands right now for more affordable prices. Posted from my Nexus 6/Nexus 7 2013/Surface Pro 3
  • Oh, yeah. They're not going anywhere soon, especially for server applications. But they're definitely stagnant or in the decline. It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • They're still go to brand for server grade HDD right? Posted via Galaxy S7 edge
  • Yes absolutely Posted from my Nexus 6/Nexus 7 2013/Surface Pro 3
  • Still my go to for any HDD. I do still use them for big data storage, but it's only a matter of time before SSDs close the gap. They'll likely stick around in servers because of superior numbers of writes (effectively limitless for magnetic storage) because they actually last pretty well when not being turned on and off constantly. It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • Well... how can they lower the acquisition amount by 3 billion? 3 BILLION is a lot of money lmao Posted via the Android Central App
  • No its not i live in the Weimar Republic and I bought a loaf of bread for 6 billion. Posted from my Nexus 6/Nexus 7 2013/Surface Pro 3
  • Holy balls! I always thought the 97 referenced 1997 not 1897! You comport yourself very well for a man of your years, sir. It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • Rofl Posted from my Nexus 6/Nexus 7 2013/Surface Pro 3
  • Neutragena circa 1896 will do that to a guy!
  • What guy? Oh thatguy?
  • Lol
  • This guy!
  • Ahh yes good times good times....but having to ditch the wallet for a wheelbarrow was a pain......... Sent via Tandy Color Computer
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    before you see the light, you have to deal with the darkness
  • Where did you you get your wheelbarrow? I get mine on sale for 1.5 billion XD Posted from my Nexus 6/Nexus 7 2013/Surface Pro 3
  • Jack hammers wheel barrel emporium in radiator springs? Or was it T mobile?
  • Who needs competition, right? Posted via the Android Central App
  • This doesn't remove any competition from the market. It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • I guess if there is only a hand full.....but there is a crap ton of memory card, flashcards...ETC company's globally make this stuff....,this won't do anything to market demand...or make prices go up...... Sent via Tandy Color Computer
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    before you see the light, you have to deal with the darkness
  • If any thing be concerned about the cpu industry. Posted from my Nexus 6/Nexus 7 2013/Surface Pro 3
  • Yup. If AMD goes under in the cpu crowd, intel then holds the monopoly. Watch intel proc prices go up by at least 30%. Sent via TRS-80.
  • They didn't compete with each other.
  • I rock Seagate HDD's, most reliable, Posted via the Android Central App
  • Haha! The old jokes are the best! It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • I love seagate. Used to use them exclusively. But when you plop in a samsung 512GB 850 pro, you'll never look back.
  • Seagate drives are garbage. They used to be fairly good but completely humped the shark in the early 2000s. I've pulled more dead Seagate drives than all other brands combined. I'd bet there's all sorts of numbers and charges online banking it up. It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • You pulled more seagates because they were more widely used than any other brand. Out of 20 seagates I've purchased in the last 10 years, I've had 2 fail after being used for 3+ years. The others are still being used. To be honest though, i have two backup drives that are western digital. I've had them a couple of years now and they are still running strong. I do agree...back in the early to mid 2000's they did have a quality issue.
  • That is a fair point, but I'd say WD drives are as common but they don't get pulled cause they fall less ;) It is fair though, they're not actually the worst drives I've come across. That honour probably goes to Maxtor. Although, now they're owned by Seagate, so... It's best to assume I'm being sarcastic. if I'm ever serious I'll type "/s" to make it clear.
  • Maxtor was horrible. It's when seagate bought maxtor is when quality went downhill for a little while. I'm thinking it was seagate rebranded maxtors that caused the issues for a time.