SanDisk to buy Israeli firm Msystems for $1.3b

Acquisition is 2nd major Israeli hi-tech takeover in a week.

July 31, 2006 11:13
SanDisk to buy Israeli firm Msystems for $1.3b

msystems 88. (photo credit: )

In the second major takeover of an Israeli technology company in a week, Msystems agreed to be acquired by fellow flash memory company SanDisk in a stock deal valued at $36 a share, or a total of about $1.3 billion. Under the agreement, each share of Kfar Saba-based Msystems will be converted into 0.76368 of a share of SanDisk common stock, representing a 26% premium over the average closing price of Msystems' shares for the last 30 trading days. Completion of the transaction was expected in the fourth quarter subject to, among other things, Israeli court approval, regulatory approval and Msystems shareholder approval. Last week, in the biggest buyout ever of an Israeli technology company, Hewlett-Packard bought Mercury Interactive Corp. for $4.5b.

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