LSI Logic Corp., Milpitas, Calif., and American Megatrends, Inc., Atlanta, today announced an agreement in which LSI Logic will acquire the assets of AMI's RAID (Redundant Array of Independent Disks) business. The purchase price was not disclosed.
As a result of this transaction, LSI Logic will hire more than 200 RAID employees, including 120 hardware and softwareengineers based in Norcross, GA, Fremont, CA and other sales service locations.
LSI Logic will also acquire AMI's MegaRAID software intellectual
property and host adapter board product family. These boards support Fibre Channel, SCSI and other leading storage I/O standards.
"This strategic acquisition will strengthen LSI Logic's product offerings for our customers in the storage components space," said John D'Errico, LSI Logic executive vice president for Storage and Internet Computing Components, in released statement.
LSI cited a study by the market research firm IDC which projects that the SCSI and Fibre Channel Host Adaptor Board market will grow from about $1.7 billion in 2000 to
approximately $2.8 billion by 2003.
LSI will use the purchase method of accounting for the acquisition of AMI's RAID business. The cash transaction is anticipated to close during LSI's second quarter ending June 30 and is expected to be immediately accretive to LSI Logic's earnings.