(The Hosting News) – Data storage company, Seagate Technology, has announced that it will acquire the assets of LSI’s Accelerated Solutions Division (ASD) and Flash Components Division (FCD) from Avago Technologies for $450 million in cash, reports the Wall Street Journal.
This purchase will help Seagate ensure a larger foothold into the storage and SSD controller market.
“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,” said Steve Luczo, Seagate chairman and CEO via press release. “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.”
This deal is scheduled to close in Q3 of 2014 and is expected to generate around $150 million in revenue next year through its SSD product line.