Image via CrunchBaseSanDisk, the leading manufacturer of flash memory, is relying largely on its assumption about the future market of solid-state storage and staying optimistic as it reaches near in finalizing the deal of acquiring another solid-state drive maker, Pliant. The rumors claim that the deal exchanges the company for a $327 million in cash along with several equity-based incentives. Pliant has been making one of the best high-yielding SAS solid-state drives, carefully designed for a market of most enterprises and data center storage solutions. The latest endeavors of the Pliant company were to release its newly manufactured PCIe-based storage systems, which are aimed for a very high-performance servers.
This acquisition deal is being seen as a very tactical step, according to the analysts. They assert that SanDisk being one of the manufacturers of flash memory, which has a wide consumer market and applications of its own, now with the acquisition of Pliant, will also put SanDisk in the direct enterprise and corporate markets as well. ScanDisk already has the grip in the consumer products market and has lead to master its products for portable devices like phones, cameras, and media players. Having already mastered the market of consumer products, now it is showing inclination to enter the enterprise and corporate markets of Pliant as well.
“We believe that the combination of Pliant’s innovative technology and enterprise-level system expertise with SanDisk’s high-quality, large-scale MLC memory production is a winning value proposition for customers,” reported the C.E.O. of SanDisk, Sanjay Mehrotra. Further he also stated that “Our advanced flash technology roadmap and flash management capability will complement Pliant’s strengths and allow us to lead the way in reliability and performance in the enterprise SSD market.”
Even the large market of Pliant, the corporate businesses and data centers, is also anxious about its new SSD storage devices, which are largely credited for the reliability in showing lower power consumption than traditional hard drives. Even though it’s solid-state storage devices can be stated as a little more expensive in comparison to hard drives if you consider on a cost-per-gigabyte basis, the costs of flash memory is showing a steep decline anyway. Pliant has been the leader of the market and development of multi-level cell (MLC) NAND solutions for many enterprise systems.
SanDisk definitely has high expectations from this deal, which will be finalized after its second fiscal quarter. Even though the deal has already acquired the approval of boards from both the companies, it is still waiting for an approval of the regulatory authorities.
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