SanDisk has bought itself a little present in Pliant.
It has splashed $327 million on Pliant Technology, which will give it a place in the enterprise solid state drive (SSD) market.
The deal has already been given the green light by both boards of directors and if everything goes as SanDisk plans, it should have its hands firmly on the company by the second fiscal quarter of this year.
The move will enable SanDisk to get its foot into the fast growing enterprise SSD market, which has so far remained at a standstill due to high prices.
If predictions are correct, SanDisk could be well in the money. It’s expected the overall SSD market will soar to $4.2 billion in 2015 from $994 million in 2010.
According to the Motley Fool, SanDisk shares rose by four percent after the announcement.
However, it’s not a case of buy and get richer. The Fool suggests the deal isn’t going to be an instant hit but has excellent potential because of the doors it opens.
Pliant already has an established relationship with the likes of EMC, meaning SanDisk will have bought itself a link with first tier partners.