updated 09:26 am EDT, Thu May 29, 2014
Deal gives Seagate second largest PCIe flash controller developer worldwide
Drive manufacturer Seagate has announced plans to purchase LSI's flash memory division from semiconductor device supplier Avago Technologies. Seagate is acquiring the company to improve its flash-based offerings in SSDs and other related technologies, as demand for rotating platter hard drives decreases. The deal is worth $450 million in cash.
The acquisition provides Seagate with established Enterprise PCIe flash and SSD controller capabilities for the growing flash storage market. The division of LSI that Seagate purchased is the second largest player in the PCIe flash space, offers enterprise-grade PCIe flash solutions aimed at the cloud and hyperscale markets. LSI's business is led by its SandForce SF2000 and SF3700 controllers, found in many drive manufacturer's product lines.
The transaction is expected to close in the third quarter of calendar year 2014, subject to the satisfaction of closing conditions and the receipt of regulatory approvals.