Seagate adds to flash business with major acquisition

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Seagate adds to flash business with major acquisition
Seagate chairman and CEO, Steve Luczo.

Seagate has bought LSI's flash storage business in a deal worth US$450 million.

An agreement sees Seagate picking up LSI's Accelerated Solutions Division and Flash Components Division from LSI parent company Avago.

Avago only recently announced its acquisition of LSI and its extensive storage technology portfolio in December 2013 for US$6.6 billion.

LSI acquired SandForce – a major component of its Flash Components Division – in 2011 for US$322 million.

The acquisition will significantly enhance Seagate's flash storage offerings, according to Seagate chairman and CEO Steve Luczo.

"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," he said.

Seagate predicts its combined enterprise SSD product line and SSD controllers will generate at least USD$150 million in revenue in the next fiscal year.

The transaction is slated to close in Q3 2014, subject to customary closing conditions and regulatory approvals.

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