Tandon said Monday that it has agreed to sell most of its data storage equipment business to Western Digital in a deal valued at nearly $80 million.
The transaction would effectively remove Chatsworth-based Tandon from a business that made it one of the personal computer industry's best-known suppliers in the early 1980s. The company now will be primarily a personal computer manufacturer.
Western Digital, a fast-growing computer equipment maker headquartered in Irvine, agreed to pay between $40 million and $45 million in cash and equipment for Tandon's hard-disk drive operation. It also agreed to cover debts of $34 million that Tandon owes to its suppliers.
The deal, which is expected to be completed early next year, reflects another sweeping move by Tandon's founder, chairman and chief executive, Sirjang Lal (Jugi) Tandon.