My, my, how quickly things change. Just over two years ago, SandForce was snatched up by LSI for $322 million. SandForce went on to become LSI's Flash Components Division. Now, it's LSI's turn to be acquired—this time for the much tidier sum of $6.6 billion.
The buyer is Avago, a firm described in the sale announcement as a "leading designer, developer and global supplier of a broad range of analog semiconductor devices." Here's the upshot of the deal, according to the two companies:
The acquisition creates a highly diversified semiconductor market leader with approximately $5 billion in annual revenues by adding enterprise storage to Avago’s existing wired infrastructure, wireless and industrial businesses. The combined company will be strongly positioned to capitalize on the growing opportunities created by the rapid increases in data center IP and mobile data traffic.
The Wall Street Journal's coverage of the buyout has a more concise summary. "In a conference call," the paper writes, "Avago CEO Hock Tan said that buying LSI will help his company expand in storage hardware and other products sold in data centers."
Data center storage seems to be the name of the game, in other words. There's no mention of consumer storage products in either the WSJ story or the official press release. That said, considering the popularity of SandForce controllers in consumer SSDs today, I'd say Avago stands to make a lot of money from maintaining LSI's current course in the consumer market.
Avago's acquisition of LSI has already been approved by the boards of both firms. The deal is still subject to a vote by LSI stockholders and to regulatory approval by the appropriate regulatory authorities.
|The TR Podcast 166 is now available on YouTube||20|
|Chromebooks now come with 1TB of cloud storage for two years||23|
|Deal of the week: Devil's Canyon starting at $179.99, Intel 730 Series for $0.42/GB, and more||32|
|AMD prolongs A-series software deal; price cuts still a work in progress||22|
|Report: Valve lays out new rules for Early Access games||55|
|Intel's 2015 revenue outlook beats Street expectations||53|
|Intel's 3D NAND has 32 layers and 256Gb per die||61|
|Telltale's Game of Thrones game looks pretty good||12|
|Sounds like a good way to conceal the terrible financial performance of the mobile business unit.||+36|