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.”
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.