San Jose, Calif.-based chipmaker Cavium is expanding into the data center and storage market by buying QLogic for about $1.36 billion. The deal, which has been approved by both companies’ boards of directors, is expected to close in the third quarter.

Cavium is offering $11 per share in cash and 0.098 of its stock, or about $15.50, for each QLogic share. The deal includes about $355 million of QLogic's cash on hand. Cavium says the deal will result in about $45 million in cost synergies by the end of 2017.

The chipmaker is touting the deal as a way to combine QLogic’s storage and connectivity solutions with Cavium’s networking, compute, and security products so it can offer customers an end-to-end solution. Cavium says that QLogic’s core business will contribute between $400 million to $410 million in annualized revenue.

Plus, the addition of QLogic’s customer base—which includes telcos, cloud, data center, storage, enterprise, and networking—is expected to result in about a $2 billion opportunity for Cavium, the company says.

QLogic boasts some high-profile customers including HPE, Dell, AT&T, Verizon, Amazon, Google, Comcast, and more. It says it’s a supplier to each of the top 10 server and top 10 storage OEMs. Cavium executives say that while QLogic’s customer overlap is greater than 60 percent, the revenue overlap across the top customers is less than 10 percent.

Cavium will also acquire QLogic’s strong IP portfolio that includes about 378 patents and 78 pending patents.

Cavium is well versed in acquiring and integrating companies. In 2014, Cavium acquired Xpliant for about $90 million. Xpliant was one of the few chip startups working on Ethernet switches, which was dominated primarily by Broadcom.