Western Digital has announced that the company will acquire SanDisk Corporation. 

The offer values SanDisk common stock at $86.50 per share or a total equity value of approximately $19 billion, Western Digital said in a press release on 21 October.

Western Digital (WD) is a leading developer and manufacturer of storage solutions that allow individuals and corporations to record and store digital data.

If the previously announced investment in Western Digital by Unisplendour Corporation Limited closes prior to the Sandisk acquisition, Western Digital will pay $85.10 per share in cash and 0.0176 shares of Western Digital common stock per share of SanDisk common stock.

But if the Unisplendour transaction has not closed or has been terminated, $67.50 in cash and 0.2387 shares of Western Digital common stock per share of SanDisk common stock, the press release said.

The combination is the next step in the transformation of Western Digital into a storage solutions company with global scale, extensive product and technology assets, and deep expertise in non-volatile memory (NVM). With this transaction, Western Digital will double its addressable market and expand its participation in higher-growth segments, the company pointed out.

Unisplendour said in September it would buy 15 percent of Western Digital for $3.78 billion. Western Digital Chief Executive Steve Miligan, according to Reuters,  said the Sandisk deal would dilute Unisplendor's stake.

"Western Digital is a company recognised globally. The company has 45-year legacy of developing and manufacturing cutting edge solutions. This is why the company is an ideal partner for SanDisk," said Sanjay Mehrotra, president and chief executive officer of SanDisk.

Upon closing the deal, Sanjay Mehrotra is expected to join the Western Digital Board of Directors, whereas Steve Milligan will continue to serve as the Chief Executive Officer of the new-combined company headquartered in Irvine, California.