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."