Western Digital acquires SanDisk for $19 billion
In an industry where there is a new blockbuster device, app, service or platform every other week, staying relevant for the long haul can be challenging. On this blog, we recently discussed the Dell-EMC merger, the largest ever of its kind, which further repositions Dell as a leader in workplace tech. Western Digital and SanDisk are two other old-school tech entities that recently turned to M&A as a solution to achieve their next goals.
Western Digital, maker of hard drives, bought SanDisk, famous for its memory cards, for $19 billion.
"The acquisition brings together two powerhouses in the data storage space," writes USA Today. "SanDisk was founded in 1988 originally under the name SunDisk. Seven years later, the company went public, trading on the Nasdaq exchange at $10 a share. The company is best known for its line of memory cards and USB flash drives used for storage."
The deal puts Western Digital in the driver's seat, as its CEO will assume leadership over the combined entities. SanDisk's CEO is expected to accept a position on Western Digital's board of directors.
While businesses and consumers continue to rely on products made by SanDisk and Western Digital, those brand names aren't as lustrous as they were in the advent of computing. As with Dell, sometimes the correct course of action is to restructure, reorganize and reinvest to gain the competitive edge that's been lost with the rise of flashier names in the industry.
With the guidance of an M&A advisor, your tech firm or startup can find, negotiate and sign a merger or acquisition deal that achieves your growth objectives. Contact us today to learn more about how working with an advisor can help your company reach the next level of expansion and success.