Toshiba Memory Corporation, soon to drop its owner's branding to become Kioxia, has announced it is acquiring the solid-state business of Lite-On Technology in a deal valued at £134.6 million.
Toshiba announced that it was to spin off the bulk of its semiconductor division back in early 2017 after taking a bath on an ill-fated nuclear power ventures in the US. The sale of the spin-off proved troublesome, with Western Digital doing its best to block a Bain Capital-led deal which was valued at £26.4 billion. Eventually an agreement was reached and with regulatory approval in May 2018 Toshiba Memory Corporation was born.
Now, ahead of a planned rebranding to Kioxia and on the tail of a share buyback programme, TMC is splashing the cash to pick up the solid-state storage business of Lite-On Technology for £134.6 million.
'Lite-On's solid state drive business is a natural and strategic fit with Toshiba Memory and expands our focus in the SSD industry,' claims Nobuo Hayasaka, acting President and CEO of Toshiba Memory Holding Corporation, the full name of TMC's holding company. 'This is an exciting acquisition for us, as it positions us to meet the projected growth in demand for SSDs in PCs and data centres being driven by the increased use of cloud services.'
The deal is expected to close in the first half of 2020, subject to the usual regulatory clearances.
October 14 2019 | 14:00