Flash storage products provider Sandisk has signed a deal with flash-based PCIe hardware and software solutions provider Fusion-io for $1.1bn, to strengthen its enterprise storage business.
The US based flash-memory chips, memory cards and storage drives maker is buying Fusion-io to gain advantage in data centre market.
SanDisk president and CEO Sanjay Mehrotra said customers will benefit from the addition of Fusion-io's PCIe solutions to SanDisk's vertically integrated business model.
"Fusion-io will accelerate our efforts to enable the flash-transformed data center, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership," Mehrotra added.
"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 around the world."
Fusion-io sells flash memory products including ioDrive, ioScale, and ioFX enterprise grade PCIe-products which are plugged into x86 servers or workstations that use flash to manage locally hosted applications.
SanDisk will fund the acquisition with its cash available cash, and will offer $11.25 per Fusion-io share.
Subject to customary regulatory conditions, the deal is expected to close in the third quarter of SanDisk's fiscal 2014.
Fusion-io chairman and CEO Shane Robison said the transaction represents a compelling opportunity for company's employees, customers and shareholders.
"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," Robison said.