Western Digital buying flash disk giant SanDisk was considered as a rumor till last week. But early this week WD has formally made an announcement that it is buying SanDisk for $19 billion in cash and stock. The deal has been approved by the board of both companies and will be sealed by April next year. And the companies expect to make $500 million in cost savings annually once the deal closes.
According to our sources, SanDisk will operate with the same name with a small mark of WD besides it from now on. Remember, Western Digital (WD) also acquired its hard disk rival HGST in 2012 for $3 billion and the companies still operate under two separate brands, WD and HGST.
It has to be notified over here that SanDisk and WD are partners already and together present to the storage market a hard drive tucked with a solid state storage called hybrid hard drive.
WD and SanDisk together have 15,000 patents granted or pending, according to a press release done by WD.
WD will offer SanDisk CEO and co-founder Sanjay Malhotra a seat on its board, while WD CEO Steve Milligan will lead the merged company.
SanDisk has however chosen to continue its joint venture NAND flash manufacturing partnership with Toshiba following the deal. They have also jointly started a facility at Fab 2 facility in Yokkaichi-Japan to start commercial production of flash. They expect to begin producing 3D flash chips there in the first quarter next year.
More details about WD acquiring SanDisk will be updated shortly.