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LSI Set to Acquire SandForce in $370 Million Deal

By - Source: Tom's Hardware US | B 6 comments

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.

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  • 4 Hide
    cmcghee358 , October 26, 2011 11:51 PM
    Hmm, new motherboard/CPU combo? Or Sandforce. Decisions decisions.
  • 0 Hide
    archange , October 27, 2011 8:51 AM
    Can't say this makes me happy. As an independent company, SandForce was able to cater to all makers on the marked (save from Intel, I guess). I would hate for LSI to hamper this and keep all future developments in house, or relegate only second-grade silicon to SSD makers.
  • -1 Hide
    dark_knight33 , October 27, 2011 9:37 AM
    Aww, my 3 pigs and marry an ugly daughter comment was removed when $370/$370M was finally corrected. Funny though that first comment remains. Guess the moderator didn't get that joke. lol. FYI, he means MB/CPU or Sandforce the *company* (at $370), I thought it was funny.
  • -1 Hide
    nieur , October 27, 2011 9:59 AM
    still in latest news it is $370
  • -1 Hide
    LukeCWM , October 27, 2011 3:27 PM
    Mom, can I borrow some money? Oh, not much, just want to buy a company that makes flash memory controllers ... please???
  • 0 Hide
    shqtth , October 29, 2011 10:38 AM
    http://www.photofast.tw/comboproducts.asp?pid=1
    Hardware based RAID controller
    PCI-Express 2.0 x 8
    Max. read up to 1400MB/s
    Max. write up to 1500MB/s
    Fully Compliant with RoHS directive
    CE and FCC compatibility

    Weight
    Dimensions
    Input Voltage
    Host Bus Interface
    Capacity
    Data Buffer
    1100g +/- 10g
    53.38mmx149.3mmx230mm
    12V, 5V ± 5%
    PCI-Express 2.0 x 8
    240GB / 480GB / 960GB
    512MB ECC DDR II and SDRAM Memory

    PhotoFast GM-PowerDrive-LSI PCIe SSD

    Seems to me there is already LSI RAID SSD solutions?