(Reuters) - Chipmaker Cavium Inc said it would buy network equipment maker QLogic Corp for about $1.36 billion, as it looks to expand in the data center and storage market.

The deal value includes about $355 million of QLogic's cash on hand. Cavium expects the deal to broaden its customer base and expand its range of network components.

"We expect significant sales synergies to drive market share gains across the company's product lines," said Cavium's Chief Executive Syed Ali on a conference call with analysts.

Under the terms of the deal Cavium will offer $11 per share in cash and 0.098 of its stock, or about $15.50, for each QLogic share. The offer represents a premium of about 14.4 percent to QLogic's close on Wednesday.

QLogic's shares were up 11.9 percent at $15.15, while Cavium shares were down 7.6 percent in aftermarket trading.

San Jose, California-based Cavium said the deal, which has been approved by the boards of both companies, would add 60 to 70 cents to its adjusted share in fiscal 2017.

Cavium also reaffirmed its guidance for the current quarter.

JP Morgan acted as exclusive financial adviser and provided a financing commitment to Cavium.

(Reporting by Narottam Medhora in Bengaluru; Editing by Shounak Dasgupta)