Press release
Combination to create best-in-class portfolio of host-bus RAID adapter solutions for distributors and system builders
MILPITAS, Calif., April 6, 2009 - LSI Corporation (NYSE: LSI) today announced that it has signed a definitive agreement to acquire the assets and certain associated intellectual property of the 3ware® RAID adapter business of Applied Micro Circuits Corporation (NASDAQ: AMCC) for approximately $20 million in cash.
3ware products include SAS and SATA RAID adapters designed to offer cost-effective, high-performance, high-capacity storage solutions for a broad range of applications. 3ware adapters are sold to end users through a worldwide network of channel partners including leading storage distributors and system builders.
"The indirect channel plays an important role in delivering today's increasingly capable, yet often complex storage solutions to customers of all sizes," said Abhi Talwalkar, LSI president and chief executive officer. "The addition of the 3ware business to the LSI storage portfolio uniquely positions us to provide an unmatched breadth of rich storage solutions coupled with the outstanding channel support needed to help channel partners maximize their effectiveness."
The transaction is expected to close within thirty days and is subject to satisfaction of customary closing conditions. Upon closing, the 3ware business will be integrated into the LSI Engenio Storage Group.
LSI expects the acquisition to be neutral to non-GAAP* earnings per share in 2009. The company expects to provide further details in April when it reports first quarter results.
