Today Western Digital Corp. (WDC) announced that it has entered into a definitive agreement under which Tegile Systems will be acquired by Western Digital. Financial terms have not yet been disclosed and the acquisition is expected to close the week of Sept. 4, 2017, upon satisfaction of certain closing conditions as set forth in the definitive agreement between the parties.
Today Western Digital Corp. (WDC) announced that it has entered into a definitive agreement under which Tegile Systems will be acquired by Western Digital. Financial terms have not yet been disclosed and the acquisition is expected to close the week of Sept. 4, 2017, upon satisfaction of certain closing conditions as set forth in the definitive agreement between the parties.
Roughly two years ago, WD made another major acquisition when it bought its competitor SanDisk for $19 billion. That acquisition gave WD SanDisk’s flash technology. The acquisition today brings in Tegile’s award winning IntelliFlash architecture. Tegile states that IntelliFlash is a comprehensive storage platform that delivers storage at the speed of flash memory. Not only will WD gain new technology and a new portfolio of products, it also gains 1,700 new customers and an experienced team through the acquisition.
The acquisition also gives WD a better-rounded approach to addressing the needs of the modern data center. IntelliFlash brings persistent, high-performing storage while WD already provides ActiveScale for big data. The combined technologies will put Western Digital’s Data Center Systems (DCS) business unit in a good position to meet emerging needs while allowing customers to gain new insights and value from their data.
The acquisition is expected to accelerate the DCS business unit’s revenue growth as Tegile’s high-value, high-growth flash storage arrays complement the DCS products and can be marketed to Western Digital’s global customer base.
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