Seagate buys LSI's flash component assets from Avago for $450 million

Seagate buys LSI's flash component assets from Avago for $450 million

Summary: LSI’s Accelerated Solutions Division (ASD) and Flash Components Division (FCD) will give Seagate a larger footprint in enterprise flash and solid state storage controllers.

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Seagate said Thursday that it will acquire the assets of LSI's flash and accelerated storage units from Avago Technologies for $450 million in cash.

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Those divisions — LSI’s Accelerated Solutions Division (ASD) and Flash Components Division (FCD) — will give Seagate a larger footprint in enterprise flash and solid state storage controllers.

Avago closed a $6.6 billion acquisition of LSI in May. 

Data centers are increasingly going with flash and solid state storage to access information for big data applications. Sandisk and Micron Technology have emerged as key players as have a bevy of upstart players. Western Digital and Seagate also see the enterprise as a key growth market.

Seagate said the LSI assets should generate about $150 million in revenue a year and be slightly accretive to earnings. Seagate plans to integrate the LSI assets with its SSD technologies.

The deal is expected to close in the third quarter.

Topics: Storage, Data Centers

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