Flash storage provider SanDisk Monday announced that it has reached an agreement to acquire Fusion-io, a developer of flash-based PCIe hardware and software solutions, for $1.1 billion. 

Sanjay Mehrotra, SanDisk president and CEO, said in a statement that Fusion-io will accelerate his company's efforts to enable data centers that use flash-based storage. 

“Customers will benefit from the addition of Fusion-io’s leading PCIe solutions to SanDisk’s vertically integrated business model," Mehrotra said. 

Under the terms of the agreement, SanDisk will purchase all outstanding shares of Fusion-io for $11.25 per share in cash. SanDisk will fund the acquisition with cash available on its balance sheet. It is expected that the transaction will close in the third quarter of SanDisk’s fiscal 2014. 

Apple founder Steve Wozniak is a co-founder of Fusion-io. He is currently the company's chief scientist. 

Shares of SanDisk were up slightly to $98 in early trading Monday.