LSI Logic to Acquire StoreAge Networking Technologies for $50M

By Chris Preimesberger  |  Posted 2006-10-26 Print this article Print

The data storage hardware and software provider goes international by acquiring Israel-based StoreAge to augment its product line.

Data storage chip and software maker LSI Logic announced late on Oct. 25 that it has acquired Israeli firm StoreAge Networking Technologies, in a cash deal worth about $50 million. StoreAge Networking Technologies, a privately held company based in Nesher, Israel, with U.S. offices in Irvine, Calif., provides SAN storage management and multi-tiered, data protection software for the enterprise. LSI Logic, based in Milpitas, Calif., said that the acquisition would enable it to offer richer products and features for its users. LSI said that it will offer employment to all of StoreAges employees, who will join the firms Engenio Storage Group.
Under terms of the agreement, LSI will acquire all outstanding StoreAge capital stock.
Additionally, LSI anticipates offering employment to all StoreAge employees, who are expected to join the companys Engenio Storage Group upon closing. The transaction is expected to close in the fourth quarter of 2006 and is subject to satisfaction of customary closing conditions. "With the rapid growth in data storage capacity, enterprise customers are seeking enhanced levels of data protection, highly effective storage management tools and reduced cost of ownership," said Phil Bullinger, senior vice president and general manager, Engenio Storage Group, LSI Logic. "Through the acquisition of StoreAge, we anticipate offering our OEM and channel customers a richer set of products and features that fully address these important end user requirements." Click here to read more about LSI Logics push in the midmarket. LSI Logic shares were trading for $9.74 on Oct. 26. LSI Logic also released its third-quarter 2006 financials on Oct. 25. Here is a summary:
  • Revenue of $493 million
  • GAAP (Generally Accepted Accounting Principles) net income of 11 cents per diluted share
  • Non-GAAP net income of 16 cents per diluted share
  • Cash and short-term investments of $1.3 billion Fourth Quarter 2006 Business Outlook:
  • Projected revenue of $500 million to $525 million
  • GAAP net income range of 10 – 13 cents per diluted share
  • Non-GAAP net income in the range of 15 – 18 cents per diluted share LSI Logic is a provider of silicon-to-systems software and hardware that are used at the core of products that create, store and consume digital information. LSI offers a portfolio of capabilities, including custom and standard product ICs, host bus and RAID adapters, storage area network solutions and software applications. Check out eWEEK.coms for the latest news, reviews and analysis on enterprise and small business storage hardware and software.
    Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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