Seagate Technology on Tuesday announced its agreement to purchase Samsung Electronics hard disk drive operations for $1.375 billion in a cash and stock deal.

Under the terms of the agreement, Samsung will receive 50 percent of Seagate’s ordinary shares – 45.2 million shares valued at $687.5 million, which is approximately 9.6 percent ownership of Seagate – and the remaining 50 percent in cash.

In addition, the agreement will expand the strategic relationship between the two companies, as Samsung will be providing Seagate with a NAND flash memory for its solid state drives, solid state hybrid drives and other products.

Meanwhile, Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics.

“With these agreements, we expect to achieve greater scale and deliver a broader range of innovative storage products and solutions to our customers, while facilitating our long-term relationship with Samsung,” said Steve Luczo, Seagate chairman, president and CEO.

The transactions, which are expected to close by the end of the year, are still subject to customary closing conditions, including review by U.S. and international regulators.