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Seagate buys LSI flash technology from Avago for $450m

Avago recovers cash from $6.6bn LSI buyout
Thu May 29 2014, 16:45
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SEAGATE WILL PAY $450m to acquire two units from Avago, which it acquired as part of a giant $6.6bn acquisition of LSI Corporation in December 2013.

Seagate is paying the money for LSI's Accelerated Solutions Division (ASD) and Flash Components Division (FCD) to help boost its offerings in a number of key areas, as Seagate CEO Steve Luczo explained.

"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," he said.

"LSI's ASD business has the broadest PCIe flash product offering and intellectual property in the market today and the FCD business has best-in-class SSD controllers with proven support for a wide range of applications.

"This acquisition immediately boosts Seagate's range and depth of flash storage capabilities today, and these teams bring to Seagate the expertise to accelerate our roadmap in this important and growing market."

Seagate has already predicted that the addition of these tools to its enterprise SSD product line and SSD Controller families will generate revenues of at least $150m in its 2015 financial year.

The transaction is set to close in the third quarter of calendar year 2014, subject to the usual approvals.

The deal marks a small return for Avago after its purchase of LSI last year. Avago  specialises in delivering wired and wireless components that allow devices to latch onto networks around the world. Its kit is used in the iPhone 4S. µ


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