SanDisk Corp., the world’s largest maker of memory cards for portable electronics, agreed to buy M-Systems Flash Disk Pioneers Ltd. for about $1.3 billion in stock to add storage products for mobile phones.
M-Systems holders will get 0.764 SanDisk share per M-Systems share, Milpitas, Calif.-based SanDisk said Sunday. That’s about $36 a share, or 13% more than M-systems closing price Friday. SanDisk said it will assume about $75 million of M-System’s debt.
The acquisition of Israel-based M-Systems will help SanDisk cater to the growing market for mobile handsets, SanDisk Chairman and Chief Executive Eli Harari said. The deal will expand SanDisk’s line of flash-memory products.
SanDisk shares, up 39% in the last year, rose 80 cents to $47.14 on Friday.
The shares of M-Systems gained 70 cents, or 2.3%, to $31.79. The stock has climbed 23% in the last year.