This announcement is a part of Western Digital’s strategic intention to exit Storage Systems, which consists of the IntelliFlash and ActiveScale companies. The firm is exploring strategic choices for ActiveScale. These actions will enable Western Digital to optimize its Data Center Systems portfolio round its core Storage Platforms enterprise, which incorporates the OpenFlex platform and fabric-attached storage applied sciences.
“As we look to the future, scaling and accelerating growth opportunities for IntelliFlash and ActiveScale will require additional management focus and investment to ensure long-term success,” mentioned Mike Cordano, president and chief working officer. “By refocusing our Data Center Systems resources on our Storage Platforms business, we are confident that the Western Digital portfolio will be better positioned to capture significant opportunities ahead and drive long-term value creation.”
“DDN has deep technical expertise and capabilities in high performance and at scale data environments, and is well positioned to build on and accelerate the success of the business,” mentioned Phil Bullinger, senior vp & common supervisor of the Data Center Systems enterprise. “Importantly, both Western Digital and DDN are aligned in our commitment to executing a smooth transition for all stakeholders. Western Digital will remain one of the largest consumers of IntelliFlash products, and customers will continue to receive best-in-class service and support.”
The transaction is anticipated to shut later this calendar 12 months, topic to the satisfaction of customary closing circumstances. Financial phrases of the transaction weren’t disclosed. Western Digital’s supposed exit of Storage Systems is anticipated to generate an annual non-GAAP EPS advantage of not less than $0.20 beginning within the fiscal 2020 third quarter ending April 3, 2020. The Company may also incur restructuring and different expenses, which aren’t determinable presently.
