Breaking News
News & Analysis

LSI to acquire SandForce for $370 million

10/26/2011 09:56 PM EDT
5 comments
NO RATINGS
More Related Links
View Comments: Threaded | Newest First | Oldest First
Dave.Dykstra
User Rank
Rookie
re: LSI to acquire SandForce for $370 million
Dave.Dykstra   10/27/2011 3:30:25 AM
NO RATINGS
From a product point of view, this looks like a good fit that could increase LSIs penetration in storage if they can make the merger work well for them.

DBSingh180
User Rank
Rookie
re: LSI to acquire SandForce for $370 million
DBSingh180   10/27/2011 4:37:39 AM
NO RATINGS
LSI has been using Sandforce flash controllers in warpdrive (PCIe based SSD) for some time now. Sandforce controllers are essentially SAS/SATA to flash IF bridge which implies the PCIe based SSD's from LSI are going to have the added latency of SAS/SATA interconnect, which according to me is a disadvantage as compared to products which have PCIe-to-Flash controllers. Only possibility I see is that LSI and SandForce are already working on PCIe-to-Flash controller in backgroung.

DBSingh180
User Rank
Rookie
re: LSI to acquire SandForce for $370 million
DBSingh180   10/27/2011 4:41:30 AM
NO RATINGS
The price point at which LSI sells warpdrive ($11K)this acquisition wouls only make sense when there is a confirmed customer in top three OEM's for warpdrive. As $370 Mn in such times is huge bet.

goafrit
User Rank
Manager
re: LSI to acquire SandForce for $370 million
goafrit   10/27/2011 8:33:35 PM
NO RATINGS
@Dave - the problem is the integration as you noted. That is the devil. It seems internal innovation is low and people are just buying these days.

cordovan66
User Rank
Rookie
re: LSI to acquire SandForce for $370 million
cordovan66   10/27/2011 9:01:45 PM
NO RATINGS
The annual revenue is about 2 Billion and net income is about 120 million. Given this, isn't 370 million too low a sale price? I thought the valuation of a company was typically 4x the revenue.

Most Recent Comments
Flash Poll
Radio
LATEST ARCHIVED BROADCAST
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.
Like Us on Facebook

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Times on Twitter
EE Times Twitter Feed
Top Comments of the Week