Flash storage chipmaker SanDisk on Monday announced a deal to buy Fusion-io on the cheap for $1.1 billion. Fusion-io (FIO), a developer of flash-based hardware and software for enterprise data centers, will provide SanDisk (SNDK) with a blue-chip customer base, enterprise vertical integration and a road map to higher gross profit margins, Sterne Agee analyst Vijay Rakesh said in a research note. SanDisk agreed to pay $11.25 a share in cash for
Flash storage chipmaker SanDisk (SNDK) on Monday announced an agreement to acquire Fusion-io (FIO), a developer of flash-based hardware and software for enterprise data centers, for $1.1 billion. SanDisk agreed to pay $11.25 a share in cash for Fusion-io, a 21% premium to Fusion-io’s closing price on Friday. In late-morning trading Monday, Fusion-io stock was up 23%, near 11.40, reflecting investor hopes for a possible competing bid. Fusion-io
Fusion-io (FIO) stock jumped Thursday after the company beat Wall Street’s fiscal Q2 forecasts, posting a smaller loss than analysts expected and guiding for a return to sales growth in the current quarter. Fusion-io says it expects current-quarter sales “in line to slightly up” from last quarter. That “would represent a return to year-over-year growth following four consecutive quarters of declines,” William Blair analyst Jason Alder pointed out