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FIO Message Board

  • busy26795 busy26795 Sep 12, 2013 10:36 AM Flag

    FIO Takeover in Bloomberg article...Cover!

    FIO Fusion-io: Bloomberg discusses takeover in FIO

    Deal Multiples

    Western Digital is paying about $645 million for Virident, net of cash. While closely held Virident’s revenue wasn’t disclosed, Rajesh Ghai, a Dallas-based analyst at Craig-Hallum Capital Group LLC, said it’s probably less than $100 million, implying that Western Digital’s paying a minimum of 6 times revenue. The median multiple for memory-device deals in the last decade is 0.91 times sales, according to data compiled by Bloomberg.

    Fusion-io’s enterprise value of $1.1 billion yesterday was just 2.5 times its revenue, data compiled by Bloomberg show. That’s after it slipped to a record low of 1.8 in August, the data show.

    An offer for $18 a share would be a reasonable starting point for a bid,
    . (EMC), the world’s biggest maker of storage computers, may be among other potential bidders for Fusion-io, Seyrafi of FBN Securities said. Dave Farmer, a spokesman at Hopkinton, Massachusetts-based EMC, said the company doesn’t comment on acquisition speculation.

    “It’s not like Seagate’s the only one that would be interested,” Seyrafi said. “Fusion-io’s attractiveness as a takeout candidate has increased. It could be valuable within a larger entity.”

    To contact the reporter on this story: Tara Lachapelle in New York at

    Sentiment: Strong Buy

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