Western Digital has agreed to purchase Sandisk for $19 billion in cash and stock, a deal which values Sandisk at $86.50 per share and represents a 12% premium over yesterday’s closing price. Current Western Digital CEO Steve Milligan will remain in charge of the company, which retains its headquarters in Irvine, California, while SanDisk’s CEO Sanjay Mehrotra is expected to remain with Western Digital and join their board of directors.
Sandisk had reportedly been looking for a buyer, with Micron the other likely candidate according to this morning’s report from The Wall Street Journal. The move should help to better position Western Digital in the SSD space, something rival Seagate appeared to be focused on when purchasing LSI last year. Neither company has any significant presence in the consumer solid-state market dominated by Samsung, and it will be interesting to see where WD goes with the Sandisk brand.