Western Digital Buys San Jose Software Firm

For $12 million in stock, Irvine-based Western Digital Corp. has bought a San Jose firm that develops storage management software, the company said Tuesday.

The acquisition of Crag Technologies continues Western Digital’s strategy of developing storage solutions in higher-margin areas such as enterprise networks and servers to sell through original-equipment manufacturers.

Crag’s 50 employees will be retained, joining a host of Crag alumni that have taken jobs at Western Digital, including Vice President and Chief Technology Officer Chris Hamlin and Senior Vice President and General Manager Mike Williams. Crag will become a subsidiary of Western Digital and will be overseen by Williams.