The Israeli-American flash drive maker purchases the Utah company in a cash deal that will give $11.25 per share to Fusion.io’s shareholders
SanDisk Corp., the Israeli-American flash driver maker, on June 16 announced that it was acquiring Fusion-io, a Utah-based maker of flash-based PCIe hardware and software, for $1.1 billion in cash.
“Fusion-io 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,” Sanjay Mehrotra, SanDisk president and CEO, said in a statement. “Customers will benefit from the addition of Fusion-io’s leading PCIe solutions to SanDisk’s vertically integrated business model. 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.”
Under the deal, SanDisk will offer Fusion-io’s shareholders $11.25 per share in cash, funded only by SanDisk’s balance sheet. The deal is expected to close in the third quarter of DY 2014.
“This transaction represents a compelling opportunity for Fusion-io’s employees, customers and shareholders,” Shane Robison, chairman and CEO of Fusion-io, said in a statement. “Fusion-io’s innovative hardware and software solutions will be augmented by SanDisk’s worldwide scale and vertical integration, enabling a combined company that can offer an even more compelling value proposition for customers and partners.”
Combining storage capabilities
Founded in 2005, Fusion-io is a Salt Lake City, Utah, company that makes flash memory products for small businesses and large data centers. With more than 7,000 customers in 80 countries, Fusion-io said it is looking to redefine the datacenter to increase performance, speed, reliability and efficiency. The company itself made some big acquisitions in 2013, purchasing London and Wales-based ID7 Ltd., and SCST Ltd., which developed a shared storage software for Linux, for $5.9 million in March 2013 and purchasing Colorado-based NexGen Storage, which developed hybrid storage systems, in April 2013 for $110.7 million.
SanDisk, meanwhile, is a Fortune 500 and S&P 500 company founded in 1988 that makes flash storage solutions. Its acquisition of Fusion-io brings together two big industry giants in the flash storage field.
Utah may seem an unlikely place for a high tech corporation by Fusion-io, but the state has a booming tech and startup scene and several resources to help companies grow and succeed. Organizations working to grow the Utah startup scene include Grow Utah Ventures, BoomStartup, StartupUtah and Beehive Startups.
Just recently, another Utah company had a reason to celebrate when it received $5 million in funding. Weave, a developer of VoIP communication services for dentists, last week received funding from A Capital, a new VC firm started by Ronny Conway and Mark Valdez, both formerly of Andreessen Horowitz.