SanDisk is spending $307 million to acquire Smart Storage Systems, a developer of enterprise solid-state memory drives.
Smart Storage has been owned since 2011 by the investment firm Silver Lake.
The deal, which has been approved by the boards of both companies, is expected to close in August. About 250 Smart Storage workers will join SanDisk, a flash-memory chip maker.
SanDisk said that the cash acquisition is its fourth in the enterprise storage market.
Smart Storage posted about $25 million in revenue for the quarter ended May 31. SanDisk Corp. expects the deal to slightly reduce its adjusted earnings per share in the second half of 2013, before boosting profits in 2014.