/// Fusion-io Rises on Speculation It Might Be the Next Flash Company to Sell Out
Shares of Fusion-io are rising like crazy today in the wake of a pair of acquisitions of two competitors, and speculation by an analyst that it could be next. Fusion shares rose by more than $2, or more than 15 percent, to $15.31 a share, after Pacific Crest Securities analyst Brent Bracelin published a slide deck arguing that the company could sell for between $22 and $27 a share in a takeover by another company. The speculation comes on the heels of yesterday’s $415 million acquisition of Whiptail by Cisco Systems , and of Virident Systems by Western Digital for $685 million the day before that. Fusion’s flash technology accelerates enterprise computing gear by speeding the process by which data is fed from the storage to the microprocessor, shortening a costly computing bottleneck. It has landed several high-profile customers, including investment bank Credit Suisse , as well as Facebook and Apple, both of which use its technology in their data centers. In a presentation to clients, Bracelin argued that Whiptail and Virident sold for valuations of about 10 times sales.
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Fusion-io Rises on Speculation It Might Be the Next Flash Company to Sell Out