MILPITAS, Calif. -- LSI Logic Corp. here today announced it intends to acquire IntraServer Tecchnology Inc. for approximately $70 million in cash.
IntraServer, a privately-held, four-year-old company develops PCI and CompactPCI host adapter boards for the likes of Compaq, Sun Microsystems, EMC, value added resellers and independent system integrators.
The acquisition serves LSI Logic's strategy of expanding its sales to high-growth network computing and communications customers.
"LSI Logic has been very active in seeking and completing strategic acquisitions that enhance the company's intellectual property offerings and engineering skill sets to better serve customers competing in rapidly growing markets," said John D'Errico, executive vice president of LSI Logic's storage I/O components and Colorado operations. IntraServer's products, engineering, and sales channels are all synergistic with LSI Logic's strategic growth direction in communications, he added.
The transaction will combine LSI Logic's high-volume, single- and dual-function SCSI and Fibre Channel host adapter board solutions with IntraServer's high-performance, multi-function (SCSI, Fibre Channel, and Ethernet) host adapter board business.
Our customers will benefit from a richer array of product solutions from a single vendor," said Bill Wuertz, vice president of the Storage Standard Products Division. "With IntraServer, LSI Logic will have the capability to offer additional new host bus adapter products as well as world-class system engineering and interoperability testing."
The strategic acquisition is expected to be immediately accretive to LSI Logic. The agreement is expected to close during LSI Logic's second quarter, ending June 30.