Virident will be acquired by HGST, a wholly-owned subsidiary of Western Digital, a computer hard drive maker. The transaction is expected to help the privately held Virident get to market quicker by taking advantage of the strong brand, relationships and global customer reach of HGST.
Virident CEO Mike Gustafson will become a senior vice president at HGST once the acquisition closes. He will report to HGST President Mike Cordano.
The deal is expected to close in the fourth quarter.
Western Digital’s shares are up 55 percent this year compared with the 18 percent rise of the Standard & Poor’s 500 index.