MILPITAS, Calif., February 16, 2007 – LSI Logic Corporation (NYSE: LSI) today announced it has signed a definitive agreement to acquire SiliconStor, Inc., a privately held company that provides silicon solutions for enterprise storage networks. SiliconStor is headquartered in Fremont, Calif. and has approximately 30 employees.
SiliconStor provides storage technology focused on the SATA (serial ATA) and SAS (serial attached SCSI) markets and is shipping patent-pending products that improve the performance, reliability, and manageability of SATA drives when used in a SAS environment.
The acquisition of SiliconStor aligns with the LSI strategy to offer server and storage system customers complete solutions including IC (integrated circuit) controllers, ROC (RAID-on-Chip), expanders, RAID software, and HBAs (host bus adapters) for the fast-growing SAS infrastructure.
With the addition of SiliconStor technology, LSI will be positioned as one of the only storage building block suppliers to offer a solution for all nodes in the storage systems architecture.
“As the demand for low cost, high-capacity storage solutions with reliable connectivity continues to grow, we are seeing a significant increase in the use of SAS and SATA disk drives in enterprise applications,” said Bill Wuertz, senior vice president, Storage Components Group, LSI Logic. “The SiliconStor acquisition, in combination with our industry-leading line-up of SAS controllers, will enable LSI to offer a complete portfolio of interoperable SAS, SATA, and software building blocks.”
At the closing of the acquisition, LSI expects to pay approximately $55 million in cash for SiliconStor. The closing of the transaction is subject to the satisfaction of customary closing conditions and is expected to occur in the first quarter of 2007.
Safe Harbor for Forward-Looking Statements:
This news release contains forward-looking statements, which include the following statements regarding: the expected closing date for the transaction, the continued market acceptance of the SiliconStor product portfolio, the anticipated benefits of the transaction, the continued growth in the demand for low cost, high-capacity storage solutions with reliable connectivity, the increase in the use of SAS and SATA disk drives in enterprise applications and the expected future product offerings of LSI. These forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: risks that the closing of the transaction may not occur or may be delayed; risks that LSI may not realize the anticipated benefits of the transaction; risks that the SiliconStor product portfolio may not achieve the anticipated market acceptance; risks that the demand for low cost, high-capacity storage solutions with reliable connectivity may not continue to grow; risks that the use of SAS and SATA disk drives in enterprise applications may not increase; risks that LSI may not be able to integrate the businesses or operations of SiliconStor successfully; and risks that LSI may not be able to retain the employees, customers or distribution partners of SiliconStor. For additional information, readers are referred to the documents filed by LSI Logic with the SEC, and specifically, the risk factors set forth in the company’s most recent reports on Form 10-K, 10-Q and 8-K. LSI Logic is not obligated to update these forward-looking statements to reflect events or circumstances after the date of this document.
About LSI Logic
LSI Logic Corporation (NYSE: LSI) is a leading provider of silicon-to-system solutions that are used at the core of products that create, store and consume digital information. LSI offers a broad portfolio of capabilities including custom and standard product ICs, host bus and RAID adapters, storage area network solutions and software applications. LSI products enable leading technology companies in the Storage and Consumer markets to deliver some of the most advanced and well-known electronic systems in the market today. More information is available at www.lsi.com.
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