The global computer storage industry is consolidating further. Hard drive maker Western Digital has said it's buying flash-memory chip producer SanDisk, stressing the two companies have complementary product lines.
One of the largest makers of hard drives for both business and personal computers, Western Digital, announced Wednesday it was taking over chip maker SanDisk in a cash-and-stock deal worth about $19 billion (16.7 billion euros).
The Irvine, California-based company said the move came as it looked to extend its reach in the global storage industry.
The buyout values SanDisk's stock at roughly $86.50 per share, marking a 15-percent premium over Tuesday's closing price.
"The combined company will be ideally positioned to capture the growth opportunities created by the rapidly evolving storage industry," WD CEO Steve Milligan said in a statement.
Both companies agreed they had complementary product lines, including hard disk drives, solid-state drives as well as cloud data center and flash storage solutions.
Milligan will serve as CEO of the combined business, with its headquarters in Irvine.
The boards of both firms approved the deal, which is scheduled to close in the third quarter of 2016. But the takeover still needs approval from SanDisk's shareholders.
hg/pad (AP, dpa)