SanDisk announced a definitive agreement to acquire SMART Storage Systems, a developer of enterprise solid state drives based on the SATA and SAS storage protocols. Under the terms of the agreement, SanDisk will pay approximately $307M in cash and certain equity-based incentive awards to acquire SMART Storage Systems, which is part of the SMART Worldwide Holdings portfolio of companies, acquired in 2011 by two related investment funds of Silver Lake. The transaction, which has been approved by the boards of directors of both companies, is subject to customary closing conditions, including regulatory review and approval, and it is expected to close in August. Approximately 250 employees of SMART Storage Systems will join SanDisk at the close of the transaction. SMART Storage Systems delivered approximately $25M of revenue in its latest quarter ended May 31, continuing its rapid growth trajectory. The impact of this acquisition is expected to be slightly dilutive to SanDisk’s non-GAAP earnings per share in the second half of 2013 and become accretive to earnings in 2014.