SanDisk
2016
$16.0B
Why
To acquire the flash memory pioneer and its joint venture assets with Toshiba (now Kioxia), instantly transforming Western Digital into a dual-portfolio powerhouse capable of competing in both the HDD and NAND flash semiconductor markets.
Impact
The acquisition altered the company's capital structure, taking on debt but providing immediate, scale in the NAND flash market, allowing the company to compete with Samsung and SK Hynix without bearing the sole financial burden of a multi-billion-dollar fab build-out. Both deals were pursued specifically to build the scale needed to remain competitive against Seagate in an industry that rewards manufacturing scale and R&D investment capacity, since HDD technology development costs are largely fixed regardless of a company's unit volume.
Outcome
Despite the immense debt burden and the brutal cyclicality of the memory market, the acquisition secured Western Digital's position as a top-tier global supplier of NAND flash, ultimately prompting the current strategic push toward a corporate spin-off to unlock the value of the combined entity.