If you’re point and shoot or DSLR camera guy, or if your smartphone has a microSD slot in it, chances are, you’re very familiar with the Sandisk brand. It’s a trusted brand for portable storage, and it has been the preferred choice among photographers and mobile phone users worldwide. A couple of disk ago, the brand was fully acquired by Western Digital.
With the completion of Western Digital’s acquisition of Sandisk, the former basically expands the market reach and flexibility in providing storage solution to a wider consumer spectrum.
According to Steve Milligan, Chief Executive Officer of Western Digital, the “transformational combination [of WD and Sandisk] creates a media-agnostic leader in storage technology with a robust portfolio of products and solutions that will address a wide range of applications in almost all of the world’s computing and mobile devices. We are excited to now begin focusing on the many opportunities before us, from leading innovation to bringing the best of what we can offer as a combined company to our customers. In addition, we will begin the work to fully realize the value of this combination through executing on our synergies, generating significant cash flow, as well as rapidly deleveraging our balance sheet, and creating significant long-term value for our shareholders.”
If you’re into numbers, under the terms of transaction of the merger, each outstanding share of Sandisk common stock was converted into the right to receive $67.60 per share in cash, and .2387 shares of Western Digital common stock. In the recent article of fool.com, the merger considered overwhelming approved by the companies’ investors last March 2016. This major transaction might induce the storage company to “to issue fresh stock, and take on substantial debt in order to raise the necessary funds”