Seagate Technology PLC (STX) acquires LSI’s flash and storage units from Avago for $450M

Posted May 29, 2014

Seagate Technology PLC (NASDAQ:STX) has announced that it will be acquiring the assets of LSI’s flash and accelerated storage units from Avago for $450 million in cash. The divisions, known as LSI?s Accelerated Solutions Division (ASD) and Flash Components Division (FCD), will give Seagate a larger footprint in the enterprise flash and solid state storage market. Avago acquired LSI for $6.6 billion in May.

The demand for flash and solid state storage to access information for big data applications is very high for data centers. The leaders in this market include SanDisk and Micron Technology. Seagate reported that the LSI assets should generate around $150 million in revenue per year and will be slightly accretive to earnings. Seagate is planning to integrate the LSI assets with its SSD technologies. The deal is expected to close in third quarter.