IRVINE, California (

TheStreet

) --

Western Digital

(WDC) - Get Report

agreed to acquire

Hitachi Global Storage Technologies

for cash and stock valued at about $4.3 billion.

Hitachi Global Storage is a subsidiary of Japan's

Hitachi

(HIT)

.

Under the deal, Western Digital will acquire Hitachi Global Storage for $3.5 billion in cash and 25 million shares valued at $750 million, based on Western Digital's closing price of $30.01 as of last Friday.

Hitachi will own about 10% of Western Digital's shares after the deal closes. Two representatives of Hitachi will be added to Western Digital's board.

The transaction is expected to close in the third quarter.

In a statement Monday, Western Digital said it would fund the acquisition with a combination of existing cash and total debt of about $2.5 billion.

"The proposed combination will result in a customer-focused storage company, with significant operating scale, strong global talent and the industry's broadest product lineup backed by a rich technology portfolio," the companies said.

-- Written by Joseph Woelfel

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Joseph Woelfel

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