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| LSI Announces Agreement To Acquire ONStor, Inc. |
| Announcement / Corporate Jul 23, 2009, 20:11 IST |
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Combination to create expanded portfolio of network-attached and unified storage solutions to help enterprises address rapid growth of unstructured data
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™ 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 www.lsi.com.
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