14 DAY TRIAL // Fusion-io is an expert in Enterprise flash-based PCI Express hardware solutions, which is just a fancy name for PCI Express SSDs (solid-state drives) and associated components. SanDisk is interested in it.
In fact, SanDisk is so interested in what Fusion-io has to offer that it has decided to just up and buy the whole company, even if it means paying over a billion dollars to get it done. And indeed, the transaction has been valued at $1.1 billion / €810 million.
Both companies' boards of directors have already approved the acquisition, though it has not been closed yet, and needs clearance from the relevant regulatory authorities.
No worries on that front of course. It's not like the deal will establish some sort of innovation-murdering monopoly or anything like that. It's all about formalities in the end.
Now, if this had been, say, an acquisition of AMD by Intel, or NVIDIA by AMD or vice-versa, then the chickens would have really been thrown among the ducks.
It's actually really funny in a way, that even if either of those parties wanted to assimilate the other, certain organizations, including the government of the US and most other countries, plus the EU, would be against it. But we digress.
SanDisk will probably use Fusion-io's expertise to make new PCI Express solid-state drives, both the add-in card variety and the ones that use PCIe tech without actually being PCI Express drives (as in, without being designed for a normal slot).
As you may or may not know, PCI Express SSDs are no longer the only ones that can reach 1.8 GB/s transfer speed. The M.2 form factor allows it as well.
Sure, the connector has to be wired through the PCI Express root complex if the small, finger-sized drives are to actually function at that level, but we've seen it done. Rarely, admittedly, but it has happened and will happen again.
That's the only thing we can look forward to on the consumer front though. SanDisk's acquisition will no doubt have a greater bearing on the enterprise and hyperscale data center markets instead. Those are, after all, the stomping grounds more familiar to Fusion-io.
The SanDisk acquisition of Fusion-io will be completed in the third quarter of 2014 and will affect the earning for the second half of the former's fiscal year 2015.
"This transaction represents a compelling opportunity for Fusion-io's employees, customers and shareholders," said Shane Robison, chairman and CEO of Fusion-io.
"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."