NetApp acquires LSI storage unit Engenio for $480 million

Engenio specializes in bandwidth intensive storage. With the acquisition, NetApp plans to focus on the video storage market as well as high performance computing applications like genomics.

NetApp on Wednesday said it has acquired the Engenio storage systems business from LSI Corp. for $480 million in cash.

The deal is expected to add to NetApp's earnings in the second quarter of its fiscal 2012.

Engenio specializes in bandwidth intensive storage (right). With the acquisition, NetApp plans to focus on the video storage market as well as high performance computing applications like genomics.

Like many storage deals of late, the plan for NetApp boils down to this: Buy a high margin storage line and then use a large sales channel to sell more gear.

In a statement, NetApp CEO Tom Georgens said Engenio gives the company reach into markets it doesn't cover. NetApp will integrate Engenio into its operations, keep engineers and combine sales teams.