Silver Lake seals $307m exit

The firm’s sale of storage technology company SMART Storage Systems marks Silver Lake’s first announced exit of 2013.

Silver Lake will sell enterprise storage technology business SMART Storage Systems to SanDisk Corporation for $307 million.

SMART Storage provides computer storage media to equipment manufacturers in the storage technology sector. Silver Lake invested in the company in August 2011, taking SMART Worldwide Holdings private and separating SMART Storage into an independent company. The investment included capital from both Silver Lake's Fund III and Silver Lake Sumeru, the firm's mid-market investment strategy. The sale is expected to close in August. 

Silver Lake did not disclose a return multiple for the transaction but said the sale marked “a successful exit for Silver Lake” in a statement. 

SMART Storage represents the first announced exit from Silver Lake this year, though Silver Lake Sumeru sold renewable energy and energy efficiency company Power-One in April.

Silver Lake remained busy during the first quarter of 2013, capping off the fundraising for its Fund IV – which closed in April on $10.3 billion, well above its $7.5 billion target – and putting together its bid for Dell along with the computer company’s founder, Michael Dell, for about $24.4 billion. If the deal is ultimately successful, the vast majority of Silver Lake’s $1.4 billion equity contribution would come from the firm’s third fund, rather than the new vehicle, sources told Private Equity International in previous interviews.

Silver Lake now manages $23 billion in combined assets under management and committed capital.