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Fusion-io to be acquired by SanDisk

SanDisk announces it will purchase Fusion-io for $1.1B in an all cash deal.

@kalenx2
Published Tue, Jun 17 2014 7:07 PM CDT   |   Updated Sat, Aug 8 2020 10:29 AM CDT

SanDisk is adding one more acquisition to its flash play with the latest announcement to acquire Fusion-io. Over the past two years, SanDisk has been rounding out its flash portfolio by acquiring Pliant Technology, Smart Storage Systems, and Schooner, but this latest acquisition is nearly twice the value of all three of those combined.

Fusion-io to be acquired by SanDisk | TweakTown.com

While the Fusion-io stock price has been on a steady decline over the past few months, the company still possessed a significant portion of the enterprise flash based PCIe market. SanDisk is looking to capitalize on this strength of Fusion-io in combination with its own capabilities from a component manufacturing standpoint. According to Sanjay Mahrotra, SanDisk president and CEO, "Customers will benefit from the addition of Fusion-io's leading PCIe solutions to SanDisk's vertically integrated business model."

Beyond these PCIe cards though, Fusion-io additionally brings an external flash play to SanDisk, the ioControl Hybrid Storage Appliance, technology that originates from Fusion-io's acquisition of NexGen Storage just last year. While Mahrotra may highlight the PCIe business, the addition of external arrays, albeit only hybrid for the time being, puts SanDisk in the mix of EMC, Netapp, Nimble, and the many other flash array vendors vying for enterprise storage business. Not to mention, the Fusion-io technologies combined with the other recent acquisitions now puts SanDisk in every possible flash market - software, modules, cards, and external arrays.

The deal is valued at $1.1 billion where SanDisk will acquire all outstanding shares of Fusion-io for $11.25 per share in cash. This is a healthy premium over the less than $8.00 per share that Fusion-io was trading at prior to the announcement. Especially, considering the looming competition from Seagate (via Avagao/LSI acquisition), PMC (Adaptec), WD (Verident), and a handful of stealth startups like I/O-Switch that are poised to truly commoditize the PCIe flash market.

NEWS SOURCE:fusionio.com

Kalen has been working in the computer industry for the past 20 years in a variety of roles ranging from his early days as a hands on tech, to starting an internet cafe in the 90’s. For the past decade, he has been focused on the data storage market, helping large data centers more efficiently achieve greater scale. Having worked with the largest enterprises, vendors, and resellers in the world, Kalen contributes a unique perspective on all things related to large datacenters and distributed enterprises – hardware, software, and the human factor. His stories reflect his split personality of part businessman, part technologist. Away from the computer, you will find him in the kitchen or at the grill, cooking up something delicious for his family and friends. His dream come true will be when 3D printers can really be trusted as a kitchen appliance.

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