On 1st October this year, Toshiba Memory Holdings Corporation will be rebranded to Kioxia Holdings Corporation. Today, Toshiba announced that to acquire its SSD business, it has signed an agreement with LITE-ON Technology Corporation. The deal, which is subject to customary closing adjustments and regulatory approval was closed at a price is 165 million US dollars and the transaction will be completed by the first half of 2020.
Toshiba Memory sees this acquisition as a way to significantly strengthen its SSD business because of LITE-ON’s proven experience in the SSD field for personal computers and data centers. LITE-ON is a Taiwan based supplier of optoelectronics, storage, semiconductors and other devices.
Back in 2008, LITE-ON started its LITE-ON Storage SBG SSD business and started designing, development and manufacturing in-house SSDs with a focused R&D team.
In a press release, Acting President and CEO of Toshiba Memory Holding Corporation, Nobuo Hayasaka said “LITE-ON’s Solid State Drive business is a natural and strategic fit with Toshiba Memory and expands our focus in the SSD industry. This is an exciting acquisition for us, as it positions us to meet the projected growth in demand for SSDs in PCs and data centers being driven by the increased use of cloud services.”
It should be noted that back in January 2018, Anandtech reported that in order to develop and build SSDs in Suzhou, China, LITE-ON has signed a joint venture deal worth $100m with Tsinghua Unigroup of which LITE-ON was said to invest $45m.
The deal was planned to be completed by 2018. With the current acquirement, Toshiba will now get the ownership of LITE-ON’s 45 percent interest in this joint venture and incidentally, this will provide a route to penetrate deep into the Chinese market.
It is expected that Toshiba Memory Holdings Corporation’s IPO will be offered in the first quarter of 2020.