We propose an external memory algorithm for the computation of the BWT and LCP array for a collection of sequences. Our algorithm takes the amount of available memory as an input parameter, and tries to make the best use of it by splitting the input collection into subcollections sufficiently small that it can compute their BWT in RAM using an optimal linear time algorithm. Next, it merges the partial BWTs in external memory and in the process it also computes the LCP values. We prove that our algorithm performs O(n AveLcp) sequential I/Os, where n is the total length of the collection, and AveLcp is the average Longest Common Prefix of the collection. This bound is an improvement over the known algorithms for the same task. The experimental results show that our algorithm outperforms the current best algorithm for collections of sequences with different lengths and for collections with relatively small average Longest Common Prefix. In the second part of the paper, we show that our algorithm can be modified to output two additional arrays that, used with the BWT and LCP arrays, provide simple, scan based, external memory algorithms for three well known problems in bioinformatics: the computation of maximal repeats, the all pairs suffix-prefix overlaps, and the construction of succinct de Bruijn graphs. To our knowledge, there are no other known external memory algorithms for these problems.