1. Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

LSI Announces Agreement To Acquire SandForce

Discussion in 'News' started by btarunr, Oct 27, 2011.

  1. btarunr

    btarunr Editor & Senior Moderator Staff Member

    Joined:
    Oct 9, 2007
    Messages:
    28,256 (11.36/day)
    Thanks Received:
    13,585
    Location:
    Hyderabad, India
    LSI Corporation today announced that it has signed a definitive agreement to acquire SandForce, Inc., the leading provider of flash storage processors for enterprise and client flash solutions and solid state drives (SSDs). Under the agreement, LSI will pay approximately $322 million in cash, net of cash assumed, and assume approximately $48 million of unvested stock options and restricted shares held by SandForce employees.

    SandForce’s award-winning products include flash storage processors at the heart of PCIe flash adapters and SSDs. Flash storage processors provide the intelligence required to deliver the performance and low-latency benefits of flash storage in enterprise and client applications. With market-proven, differentiated DuraClass technology, SandForce flash storage processors improve the reliability, endurance and power efficiency of flash-based storage solutions.

    The acquisition greatly enhances LSI’s competitive position in the fast-growing server and storage PCIe flash adapter market, where the WarpDrive family of products from LSI already uses SandForce flash storage processors. The complementary combination of LSI’s custom capability and SandForce’s standard product offering propels LSI into an industry-leading position in the rapidly growing, high-volume flash storage processor market space for ultrabook, notebook and enterprise SSD and flash solutions.

    “Flash-based solutions are critical for accelerating application performance in servers, storage and client devices,” said Abhi Talwalkar, LSI president and chief executive officer. “Adding SandForce’s technology to LSI’s broad storage portfolio is consistent with our mission to accelerate storage and networking. The acquisition represents a significant, rapidly growing market opportunity for LSI over the next several years.”

    Michael Raam, SandForce president and CEO, said, “The combination of SandForce and LSI allows us to deliver differentiated solutions in the PCIe flash adapter segment by tightly integrating flash memory and management. In addition, leveraging our flash storage processors with LSI’s comprehensive IP portfolio and leading-edge silicon design platforms will lead to innovative solutions.”

    The transaction is expected to close early in the first quarter of 2012 subject to customary closing conditions and regulatory approvals. Upon closing, the SandForce team will become part of LSI’s newly formed Flash Components Division, with Raam as general manager.

    LSI expects the acquisition to be neutral to non-GAAP* earnings per share in 2012. The company will provide further details during its conference call at 2 p.m. PDT today and discuss third quarter results and the fourth quarter 2011 business outlook.

    *GAAP refers to Generally Accepted Accounting Principles. Non-GAAP earnings exclude goodwill and other intangible asset impairment, stock-based compensation, amortization of acquisition-related intangibles, purchase accounting effect on inventory, restructuring of operations and other items, net, and gain/loss on sale/write-down of investments. It also excludes the income tax effect associated with the above-mentioned items.
  2. buggalugs

    buggalugs

    Joined:
    Jul 19, 2008
    Messages:
    921 (0.42/day)
    Thanks Received:
    135
    Location:
    Australia
    What does it mean for OCZ and the other brands that use sandforce technology?
  3. qwerty_lesh

    qwerty_lesh

    Joined:
    Jul 26, 2007
    Messages:
    534 (0.21/day)
    Thanks Received:
    41
    Location:
    Melbourne, Australia
    I'm real surprised that it wasn't acquired by OCZ, given their past relationships, and how ocz's main products heavily rely on their controllers.

    Guess they spent all their moneys on PLX :roll:

    If their relationship with LSI doesn't go as smoothly as it did with Sandforce (i.e, massive favoritism) then I suppose they'll just end up relying on Indilinx a lot more throughout their primary product lineup or stuff i dunno. :pimp:
  4. buggalugs

    buggalugs

    Joined:
    Jul 19, 2008
    Messages:
    921 (0.42/day)
    Thanks Received:
    135
    Location:
    Australia
  5. Halk New Member

    Joined:
    Jan 24, 2011
    Messages:
    105 (0.08/day)
    Thanks Received:
    26
    OCZ don't compete with LSI and use LSI technology in some of their products, so it's not an issue for them.

    Additionally OCZ bought Indilinx so even if Sandforce came off the market and went LSI only then they'd still have a vendor.
  6. buggalugs

    buggalugs

    Joined:
    Jul 19, 2008
    Messages:
    921 (0.42/day)
    Thanks Received:
    135
    Location:
    Australia
    Yeh their Octane drives dont look too bad.
  7. crazyeyesreaper

    crazyeyesreaper Chief Broken Rig

    Joined:
    Mar 25, 2009
    Messages:
    8,131 (4.16/day)
    Thanks Received:
    2,745
    Location:
    04578
    yea the new Indilinx controller is just as fast as the sandforce controller but without all the issues. so OCZ no longer cares there investment in acquiring Indlinx is now paying off Sandforce was just there go to for filling in there product lines untill they had a controller that could compete.
  8. Halk New Member

    Joined:
    Jan 24, 2011
    Messages:
    105 (0.08/day)
    Thanks Received:
    26
    In all fairness issues with controllers is not a new thing at all. Intel have had several issues, I think Barefoot had issues, Sandforce has had issues and the first gen JMicron had issues.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guest)

Share This Page