LONDON SanDisk Corp is to acquire rival Flash memory supplier msystems with the deal set to be completed following approval from a number of bodies including the Israeli courts and msystems shareholders by the end of the year.
In an all stock transaction, each msystems (Kfar Saba, Israel) ordinary share will be converted into 0.76368 of a share of SanDisk (Milpitas, CA) common stock, representing a 26 per cent premium over the average closing price of msystems’ shares for the last thirty trading days.
Msystems will become a wholly owned subsidiary of SanDisk and make use of its in-house memory manufacturing facilities.
“Msystems is a leader in flash memory systems addressing mobile, portable and embedded markets and they have a strong team, significant IP and important OEM customers. SanDisk has a record of creating new market categories, world-class manufacturing capabilities and leading market share in the retail channel,” said Eli Harari, Chairman and CEO of SanDisk. “Both companies are noted for their relentless innovation, and this acquisition is intended to further accelerate our pace of innovation. In the near term, this transaction better positions SanDisk to serve the expanding storage needs of handset manufacturers and mobile network operators.”
“This strategic deal will enable us to continue supporting our OEM customers, to whom we remain fully committed, and strengthen our innovation and product offering with SanDisk’s leading edge, low-cost fab capacity,” Dov Moran, President and Chief Executive Officer of msystems.