Western Digital to buy ScanDisk for £12.35billion

In a low interest rate environment, where growth is harder consolidation is the only way. Three multi-billion-dollar acquisitions totalling  £22.1 billion $34 billion, including Western Digital acquiring  flash memory maker ScanDisk for £12.35 bn $19 bn, semiconductor maker Lam Research buying rival KLA-Tencor Corporation for £6.92 bn $10.65 bn and IT management software group SolarWinds sold for £2.93 bn $4.5 bn to Silver Lake and Thoma Bravo.

Western Digital which makes the portable hard disk drives used in laptops, has been searching for growth as its traditional revenues were on the decline, despite receiving injection of cash from Tsinghua Unigroup, a Chinese state-controller tech investment group, which bought a 25 percent stake for £2.47 bn $3.8 bn, which in fact could go a long way in funding the acquisition of ScanDisk.

Western Digital ‘s cash and stock offer values ScanDisk at £56.23 $86.5 per share, Lam Research cash and stock values KLA-Tencor’s at £43.55 $67 per share and  Silver Lake and Thoma Bravo will pay solar wind’s shareholders £39.07 $60.1 per share.