It has been quite some time since we first heard that Western Digital would be acquiring SanDisk but now, WD has officially completed its purchase following on from regulator approval last week. This buyout was announced all the way back in October 2015 in a deal worth close to $19 billion.
However, as The Verge points out, the Chinese company known as Unisplendour had planned to buy a 15 percent stake in Western Digital as part of the merger, but it later dropped out, lowering the overall value of the WD/SanDisk deal to around $16 billion.
While this was a slight hitch in the plan, Western Digital was still confident in its decision to buy SanDisk and reaffirmed its plans to create the world’s leading storage solutions company. Up until now, Western Digital has focussed on Hard Drives, which are still useful but the market has been transitioning to SSD storage for some time now.
Fortunately, SanDisk happen to make some very good SSDs, so with this acquisition, Western Digital will now have a larger place in both markets.
KitGuru Says: While Western Digital has remained successful in the HDD market for some time, SSDs are the future and with this acquisition, the company will have secured itself a place in that market.