LSI buys Infineon's disk biz
Serves Hitachi with second-hand platter
Posted in Enterprise, 11th March 2008 00:58 GMT
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LSI is pushing Germany's Infineon Technologies out of its market by acquiring the company's hard drive business for an undisclosed sum.
Under the agreement, Infineon will transfer its complete HDD activities to LSI, including equipment, software, customer relations and intellectual property.
Today's announced purchase plays into LSI's master plan of selling a more complete package to hard drive manufacturers worldwide, according to LSI executive Ruediger Stroh.
"We expect the acquisition to immediately accelerate revenue with top-tier customer, Hitachi Global Storage Technologies, while enhancing our competitive position in the desktop and enterprise space," Stroh said in a statement.
Infineon chalks the deal up to further "streamlining" of its operations, and stresses the sale "does not compromise significant assets" or affect many employees.
The acquisition is expected to close in the second calendar quarter of 2008. Industry scuttlebutt places the deal at about $150m, although neither company will confirm that figure. ®
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