MILPITAS, Calif. -- LSI Logic Inc. today announced completion of its $420 million stock purchase of DataPath Systems Inc., a San Jose-based supplier of products for asynchronous digital subscriber line (ADSL), cable modems and high-performance tranceivers. The purchase was announced two months ago to expand LSI Logic's offerings in fast-growing communications applications (see May 22 story).
"The DataPath purchase illustrates LSI Logic's strategy of using targeted acquisitions to amass critical intellectual property and products to accelerate our growth in high-volume communications markets, such as broadband, networking and wireless," said John Daane, executive vice president of LSI Logic's Communications Products Group. "DataPath provides LSI Logic with key analog building blocks for ADSL, cable modems, and high-speed transceivers that complement existing LSI Logic products for customers competing in the broadband space."
The acquisition is expected to be accretive to LSI Logic's earnings before goodwill amortization (EBG) during 2001. DataPath employs 130 workers, about 115 of them being design engineers, said LSI Logic.