SanDisk Buys Fusion-IO For $11.25; All-Cash Deal Worth $1.1B
Fusion-IO (NYSE: FIO), a leading developer of flash-based PCIe hardware and software solutions that enhance application performance in enterprise and hyper-scale data centers, have jumped more than 25 percent Monday morning on news SanDisk (NASDAQ: SNDK) is buying the company in an all-cash deal worth about $1.1B.
SanDisk has agreed to use cash from their balance sheet to pay Fusion-IO $11.25 per share and expects the deal to add to adjusted EPS in the second half of 2015. The transaction is expected to be completed in the third quarter of 2014. The transaction has been approved by the boards of directors of both companies and will be clearance from relevant regulatory authorities.
Fusion-IO closed Friday's trading at $9.28 per share which means SanDisk's $11.25 per share bid is roughly 20 percent premium to Friday's close.
Currently Fusion-IO is trading off its premarket high of $12.23 and is trading up roughly 24 percent around $11.51.
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