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DataDirect Networks to buy Western Digital's storage business IntelliFlash

DataDirect Networks Inc. agreed to acquire Western Digital Corp.'s IntelliFlash enterprise storage business.

The deal is in line with Western Digital's strategy to exit the storage systems, which include IntelliFlash and ActiveScale businesses, in a bid to focus on the data center systems portfolio around its core storage platforms business. The company is considering strategic options for ActiveScale.

Exiting the storage systems businesses is expected to generate at least 20 cents non-GAAP EPS benefit for the company annually, starting in the fiscal quarter ending April 3, 2020, Western Digital said.

The deal is expected to close later in 2019, subject to customary closing conditions. Financial terms of the transaction were not disclosed.

DataDirect and Western Digital also reached a global strategic sourcing agreement, under which the former will increase its purchase of Western Digital's HDD and SSD storage devices.

DataDirect Networks is a privately held storage company, while Western Digital is a data infrastructure company.