LSI buying Infineon’s hard drive chip biz

Mar. 10, 2008 – LSI has agreed to acquire the assets of Infineon Technologies’ hard disk drive semiconductor business for an undisclosed amount. The deal encompasses product designs and related software, inventory, and test equipment, and will include additional agreements for IP, design and transition services, and supply agreements.

Adding the HDD biz gives LSI “another significant step toward becoming the leading worldwide provider of silicon solutions for hard disk drive makers,” according to Ruediger Stroh, EVP and GM of LSI’s storage peripherals group, in a statement. He noted it will “immediately accelerate revenue” with the addition of key Tier 1 client Hitachi Global Storage Technologies, and will boost the company’s presence in desktops and servers.

LSI says the deal, expected to close in 60 days, will be neutral to slightly accretive to its non-GAAP earnings in 2008. More details will be provided in LSI’s 1Q08 results next month.


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