Western Digital to Acquire Virident Systems (WDC)

On Monday, storage solution company Western Digital Corp (WDC) announced that it has agreed to acquire Virident Systems, Inc. for $685 million.

The flash storage solutions company will be purchased by HGST, which is a subsidiary of WDC, for a total of $685 million in cash. This amount represents approximately $645 million in enterprise value.

This deal will allow WDC to expand its presence in the solid state drives market. This market is expected to grow from $2.5 billion in revenue in 2012 to $7 billion in revenue by 2017.

Mike Cordano, president of Western Digital unit HGST commented: “Virident’s server-side flash storage helps datacenter customers solve their most significant data infrastructure challenges, including application performance across diverse workloads, power efficiency, and total cost of ownership.”

Western Digital shares were up 37 cents, or 0.57%, during pre-market trading Monday. The stock is up 53% YTD.