On Monday, computer memory maker Sandisk (SNDK) announced that it would purchase flash memory developer Fusion-io (FIO) for a premium of 21% over FIO’s closing price on Friday. Not surprisingly, FIO shares jumped almost 23% in morning trading.
SNDK said it would pay $11.40 per FIO share to acquire the company, valuing the deal at $1.21 billion. SNDK said it would finance the all-cash deal with available funds. The acquisition of FIO is anticipated to close during SNDK’s fiscal third quarter, the Wall Street Journal notes.
On news of the deal, SNDK shares climbed more than 2%. SNDK stock closed at $98.47 per share on Friday.
In April, FIO shares sank after Fusion-io reported a fiscal third quarter loss of $10.5 million, missing analysts’ estimates.
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