SanDisk takes over money losing Fusion-IO at a big premium to increase its hold on the quickly consolidating NAND market.

Fusion io Memory market convergence continues with SanDisk takeover of Fusion IO

SanDisk announced Tuesday that it has reached a deal to purchase enterprise SSD maker Fusion-IO in an all-cash deal worth $1.1 billion or $11.25 a share — a 25 percent premium over the company’s closing price on Friday.

To some, such a premium on a company that has struggled to remain profitable might be curious. But considering the trend of consolidation within the memory market during the last half-decade, particularly the acquisition of Avago by Seagate, this comes as a strategic move to snap up one of the few remaining flash memory companies.

“Fusion-io will accelerate our efforts to enable the flash-transformed data center, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership,” SanDisk CEO Sanjay Mehrotra said in a statement.

According to statements make in the press by Fusion-IO executives, Fusion-IO will retain its name and brand whilst using SanDisk as a sole supplier of NAND memory.

The deal is expected to close in 2015, after approval from regulators.