This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

SanDisk Picks up Fusion-io for $1.1B

Stocks in this article: SNDK FIO

NEW YORK (The Deal) -- SanDisk (SNDK) said Monday it has a deal in place to acquire Fusion-io (FIO) for $1.1 billion, adding a suite of hardware and software products to its flash memory and storage operation.

Salt Lake City-based Fusion-io is a developer of flash-based products that help boost application performance at datacenters, helping corporate customers run systems faster. The company, which boasts Apple (AAPL) co-founder Steve Wozniak as chief scientist, has well-regarded technology but has struggled as a business, reporting losses in each of the past five quarters.

Terms of the deal call for SanDisk to pay $11.25 per share in cash for Fusion-io, a premium of 21% to the target's Friday close. SanDisk said it would fund the purchase from cash available on its balance sheet.

Milpitas, Calif.-based SanDisk makes memory chips used in computers, smartphones, cameras and music players. The company has been attempting to add to its higher-end technical offerings, which promise higher margins and less vulnerability to commodity price swings.

Company CEO Sanjay Mehrotra in a statement said that the purchase "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."

The deal should also help SanDisk boost sales to large corporate accounts.

"Customers will benefit from the addition of Fusion-io's leading PCIe solutions to SanDisk's vertically integrated business model," Mehrotra said. "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."

Fusion-io chairman and CEO Shane Robison called the deal "a compelling opportunity for Fusion-io's employees, customers and shareholders," saying his company would benefit from being part of SanDisk's global operations.

Goldman, Sachs & Co. acted as financial adviser to SanDisk, with Skadden, Arps, Slate, Meagher & Flom LLP's Amr Razzak, Kenton King, Sonia Nijjar, Marat Massen, Christopher Yap, Karen Corman, Christy Peetz, Joseph Yaffe, Kristin Davis, Laura McIntyre, Eric Sensenbrenner, Nathan Giesselman, David Hansen, Stuart Levi, Carrie LeRoy, Andrew Woodard, Ken Kumayama, Greg Norman, Sharis Pozen, Steven Sunshine, Ingrid Vandenborre, Joanna Warren and Alison Bloch serving as legal counsel.

Fusion-io was advised by Qatalyst Partners and Wilson Sonsini Goodrich & Rosati.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.27 +421.40 2.43%
S&P 500 2,055.30 +42.41 2.11%
NASDAQ 4,740.6490 +96.3370 2.07%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs