Lake Forest-based disk drive maker Western Digital Corp. said Thursday it is paying $1 billion for Komag Inc. in its biggest deal yet.
San Jose-based Komag makes thin-film metal disks, the part of a drive that stores data.
The move gives Western Digital the ability to make almost an entire drive on its own, without relying on suppliers.
The integration of Komag is set to improve profits within a year and make the company more efficient, Western Digital Chief Executive John Coyne said in a statement.
The buy builds on Western Digital’s 2003 acquisition of then-bankrupt Read-Rite Corp., which makes heads that read metal disks.
Komag, with yearly sales of about $994 million, is set to become a Western Digital subsidiary.
The deal is expected to close in the fall, the company said.
Separately on Thursday, Komag warned that second-quarter sales are expected to be down about 30% from the first quarter. Analysts expected an 18% decline, or sales of about $217 million.
