Western Digital Agrees To Buy SanDisk in $19 Billion Cash, Stock Deal

Western Digital will acquire all outstanding shares of SanDisk in a $19 billion cash and stock deal, according to a definitive agreement announced by the companies Wednesday. Western Digital will pay $85.10 per share in cash and 0.0176 shares of Western Digital common stock per share of SanDisk common stock. If Unisplendour’s previously announced $3.8 billion purchase of 15 percent of Western Digital hasn't closed or has been terminated, Western Digital will pay $67.50 in cash and 0.2387 shares of Western Digital common stock per share of SanDisk common stock, said the companies. The boards of Western Digital and SanDisk approved the transaction, they said. The transaction is also subject to approval by SanDisk shareholders, and, if the Unisplendour transaction doesn't close, it will require the approval of Western Digital shareholders, along with regulatory approvals and other customary closing conditions, they said. Combining the companies is the next step in transforming hard-disk maker Western Digital into a “storage solutions company with global scale, extensive product and technology assets, and deep expertise in non-volatile memory (NVM),” it said. The acquisition will enable Western Digital to double its addressable market and expand its position in higher growth segments, Western Digital said. SanDisk’s 15-year joint venture with Toshiba will continue, providing “stable NAND supply at scale through a time-tested business model,” and the venture extends across NVM technologies such as 3D NAND, they said. Steve Milligan will continue as CEO of the combined company, which will remain in its Irvine, California, headquarters. Upon closing, slated for Q3, SanDisk CEO Sanjay Mehrotra is expected to join the Western Digital board, the companies said.