SanDisk buys Fusion-io to accelerate the flash-based data centre

Fusion-io, the nine year-old flash I/O acceleration specialist whose chief scientist is Steve Wozniak, has been bought by SanDisk for around $1.1 billion – less than its market cap of $1.23 billion.

Fusion saw it’s co-founders – CEO and CMO – leave last year and also it’s CFO. It has made a loss for the last five quarters. Revenues have been running at about $100 million a quarter.

The Q1 loss was $27 million.

Fusion-io went public in 2011 at $19 a share. Today’s price is $11.40.

Samsung and Lightspeed are among investors in the company.

The company’s main customers are Apple and Facebook who use Fusion-io’s products to speed up data centres. Other customers include IBM, Dell, HP, Cisco, Fujitsu and Supermicro.

Fusion-io acquired Nexgen Storage last year for about $120 million and IO Turbine for about $95 million in 2011.

“Fusion-io will accelerate our efforts to enable the flash-transformed data centre,” says SanDisk CEO Sanjay Mehrotra.

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