LSI Announces Agreement to Acquire ONStor, Inc.
July 22 2009 - 3:01PM
PR Newswire (US)
Combination to create expanded portfolio of network-attached and
unified storage solutions to help enterprises address rapid growth
of unstructured data MILPITAS, Calif., July 22
/PRNewswire-FirstCall/ -- LSI Corporation (NYSE: LSI) today
announced that it has signed a definitive agreement to acquire
ONStor, Inc. for approximately $25 million in cash inclusive of
assumed debt and other net liabilities. ONStor, Inc., a privately
held company based in Campbell, Calif., provides clustered
network-attached storage (NAS) solutions designed to help
enterprises consolidate, protect and manage the accelerating growth
of unstructured data. ONStor(TM) products include NAS gateways, NAS
systems and unified storage systems sold to end users through a
worldwide network of channel partners and original equipment
manufacturers (OEMs). "The rapid growth of unstructured data is
creating significant challenges for enterprises in provisioning,
protecting and managing their storage in an efficient and
cost-effective manner," said Abhi Talwalkar, LSI president and
chief executive officer. "With the addition of ONStor products and
technology, LSI will be well positioned to offer a comprehensive
set of storage solutions to help enterprise customers effectively
manage both their unstructured and structured data with ease." The
transaction is expected to close within thirty days and is subject
to satisfaction of customary closing conditions. LSI expects the
acquisition to be roughly neutral to non-GAAP* earnings per share
in 2009. The company expects to provide further details on July 29
when it reports second quarter results. * GAAP refers to Generally
Accepted Accounting Principles. Non-GAAP earnings per share exclude
goodwill and other intangible asset impairment, stock-based
compensation, amortization of acquisition-related intangibles,
restructuring of operations and other items, net, purchase
accounting effect on inventory, loss on write-down of debt/equity
securities, gain on repurchase of convertible subordinated notes
and acquired in-process research and development. It also excludes
the income tax effect associated with the above mentioned items.
Forward Looking Statements: This news release contains
forward-looking statements that are based on the current opinions
and estimates of management. These statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking
statements. Factors that could cause LSI's actual results to differ
materially from those set forth in the forward-looking statements
include, but are not limited to: the successful consummation of the
transaction announced above; our ability to successfully integrate
and manage the ONStor business; our reliance on major customers and
suppliers; our ability to keep up with rapid technological change;
our ability to compete successfully in competitive markets; the
successful transition of the operations of Agere Systems to our
enterprise resource planning system; fluctuations in the timing and
volumes of customer demand; the unavailability of appropriate
levels of manufacturing capacity; and general industry and market
conditions. For additional information, see the documents filed by
LSI with the Securities and Exchange Commission, and specifically
the risk factors set forth in the company's most recent reports on
Form 10-K and 10-Q. LSI disclaims any intention or obligation to
update or revise any forward looking statements, whether as a
result of new information, future events or otherwise. About LSI
LSI Corporation (NYSE:LSI) is a leading provider of innovative
silicon, systems and software technologies that enable products
which seamlessly bring people, information and digital content
together. The company offers a broad portfolio of capabilities and
services including custom and standard product ICs, adapters,
systems and software that are trusted by the world's best known
brands to power leading solutions in the Storage and Networking
markets. More information is available at http://www.lsi.com/.
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