LSI Set to Acquire SandForce in $370 Million Deal
SandForce finds itself an owner.
The maker of those impressive SandForce SSD controllers that we so fondly know now has a new owner. Semiconductors and software company LSI Corporation today announced that it has signed a definitive agreement to acquire SandForce, Inc. 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.
LSI's WarpDrive family of products already uses SandForce flash storage processors. The acquisition will benefit LSI's competitive position in the server and storage PCIe flash adapter market, but availability of SandForce in the consumer and enthusiast products shouldn't be affected in the near future.
"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.