Seagate Technology is all set to scoop up LSI’s flash storage business in a $450 million deal with Singapore based Avago Technologies.
The assets included in the transaction are LSI’s Accelerated Solutions Division (ASD) that manufactures enterprise class PCIe interfaces and Flash Components Division (FCD) that makes the SandForce line of controllers used in high-volume flash components.
It’s unclear whether the company will make the SandForce line of components available to other manufacturers such as Intel, Kingston, etc. However, the deal will certainly expand Seagate’s offerings in the flash storage range.
Seagate CEO Steve Luczo said in a statement that the acquisition will immediately increase the range and depth of its flash storage capabilities and that the expertise of the acquired technology will accelerate its progress in the growing flash storage market.
Seagate has expressed intentions to integrate LSI’s flash technology with the company’s SSD and said that it is expecting at least $150 million from its newly acquired asset.
Luczo said, “Seagate is committed to providing our customers with a complete range of storage solutions, and this acquisition will significantly enhance our flash storage offerings to supplement our existing portfolio.”
LSI paid $370 million for the SandForce technology in 2012 and roughly 2 years later, it is valued at $80 million more than what it cost the company initially. Earlier in May, Avago bought LSI in a $6.6 billion deal and the $450 million deal seems to be definitely a steal for Seagate.
The Seagate-SandForce acquisition is expected to close before the end of the third quarter of 2014.
