Storage solution provider Seagate Technology will pay $450m in cash to acquire LSI’s Accelerated Solutions Division (ASD) and Flash Components Division (FCD) from Avago.
Earlier this month, Singapore based semiconductor company Avago had completed the acquisition of US based semiconductor company LSI for $6.6bn.
Seagate expects that the deal will strengthen its capability in offering storage solutions with Enterprise PCIe flash and SSD controller capabilities to meet demand in growing flash storage market.
Seagate chairman and CEO Steve Luczo said the acquisition will enhance company’s flash storage offerings to supplement the existing portfolio.
"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," Luczo claimed.
"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."
LSI is the second biggest player in PCIe flash space and supplies products which are used with focus on higher growth cloud and hyperscale markets.
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Major offering from LSI include SandForce SF2000 and SF3700 controller products and planning to broaden its offering to target volume markets.
The deal is expected to close in the third quarter of 2014, and Seagate is expecting that the combination of its SSD product and SSD Controller offerings will generate at least $150m in revenue.
