In April of 2013, Fusion-io purchased NexGen storage as part of an IP rollup that included ID7. The vision was to combine Fusion's ioMemory, hard disk drives and ioControl software on x86 servers to create hybrid systems that offer flash-array performance at a far lower cost. Fusion-io paid $119 million in the deal to acquire NexGen. Now less than two years later, Fusion-io acquirer SanDisk has decided that the NexGen portfolio would be better off on its own, rebirthing the NexGen brand in a newly spun-off company.
In April of 2013, Fusion-io purchased NexGen storage as part of an IP rollup that included ID7. The vision was to combine Fusion's ioMemory, hard disk drives and ioControl software on x86 servers to create hybrid systems that offer flash-array performance at a far lower cost. Fusion-io paid $119 million in the deal to acquire NexGen. Now less than two years later, Fusion-io acquirer SanDisk has decided that the NexGen portfolio would be better off on its own, rebirthing the NexGen brand in a newly spun-off company.
Sumit Sadana, executive vice president and chief strategy officer, SanDisk Corporation indicated that the move is simply a clarification of the SanDisk product lines. Hybrid storage systems are not part of SanDisk's strategic focus and are thus being removed. While SanDisk will continue to supply NexGen with product, they are not retailing any ownership interest. John Spiers, co-founder and chief executive officer of the original NexGen, will lead the new/old company. NexGen looks forward to incorporating all types of storage, from local to cloud, in new solutions designed to meet emerging storage needs.
Terms of the transaction have not been disclosed.
