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Monday, June 16, 2014

SanDisk to purchase Fusion-io to boost flash storage business, (NYSE: FIO), (NASDAQ: SNDK)

SanDisk Corp is buying Fusion-io Inc for about $1.1 billion to add heft to its fast-growing business of providing flash storage drives to companies.SanDisk, whose flash memory chips are widely used in smartphones and cameras to store data, is increasingly using its chips to build and sell its own solid-state drives, which offer higher profit margins, to companies."(SanDisk) was already positioning the company as more of a enterprise storage company ... what the Fusion-io deal does is it enhances that significantly," Cross Research analyst Steven Fox said.Solid-state drives (SSDs) are faster than traditional hard-disk drives, consume less power and are more shock resistant and durable as they do not have moving parts.

Fusion-io Inc (Fusion) is a provider of datacenter solutions that accelerate databases, virtualization, cloud computing, big data, and the applications that help drive business from the smallest e-tailers to some of the largest data centers, social media leaders, and Fortune Global 500 businesses. Shares of FIO traded higher by 22.84% or $2.12/share to $11.40. In the past year, the shares have traded as low as $7.77 and as high as $15.59. On average, 2716180 shares of FIO exchange hands on a given day and today's volume is recorded at 23015536.

SanDisk Corporation designs, develops and manufactures data storage solutions in a range of form factors using its flash memory, controller and firmware technologies. Shares of SNDK traded higher by 2.55% or $2.51/share to $100.98. In the past year, the shares have traded as low as $53.09 and as high as $100.81. On average, 3752740 shares of SNDK exchange hands on a given day and today's volume is recorded at 1757796.



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