SanDisk to acquire Flash player Fusion-IO for $1.1bn

Acquisition and merger sign

Flash storage player Fusion-IO looks set to be acquired by solid state disk (SSD) specialist SanDisk for approximately $1.1 billion.

SanDisk confirmed in a statement that it has signed a definitive agreement to purchase Fusion-IO, who specialises in the development of PCIe-based Flash products for enterprise datacentres.

One of the firm's most high-profile clients is Facebook, who reportedly uses its technology to ensure speedy performance of the social networking giant's site functions.

The deal has won the approval of the board of directors of both companies, but still requires sign-off from various US regulatory bodies before it can be completed.

It's anticipated the deal will close in the third quarter of SanDisk's financial year.

Sanjay Mehortra, president and CEO of SanDisk, said acquiring Fusion-IO will allow the company to step up its efforts to get more customers to use Flash technology in their datacentres.

"Customers will benefit from the addition of Fusion-IO's leading PCIe solutions to SanDisk's vertically integrated business model," he said.

"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 across the world."

Shane Robison, chairman and CEO of Fusion-IO, said the deal represents a "compelling opportunity" for his firm's customers, shareholders and employees.

"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."

IT Pro contacted Fusion-IO for further details on what the merger means for its branding and staff retention, but had not received a reply at the time of publication.

Caroline Donnelly is the news and analysis editor of IT Pro and its sister site Cloud Pro, and covers general news, as well as the storage, security, public sector, cloud and Microsoft beats. Caroline has been a member of the IT Pro/Cloud Pro team since March 2012, and has previously worked as a reporter at several B2B publications, including UK channel magazine CRN, and as features writer for local weekly newspaper, The Slough and Windsor Observer. She studied Medical Biochemistry at the University of Leicester and completed a Postgraduate Diploma in Magazine Journalism at PMA Training in 2006.