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LSI Pays $55M for SiliconStor

MILPITAS, Calif. -- LSI Logic Corporation (NYSE: LSI - News) today announced it has signed a definitive agreement to acquire SiliconStor, Inc., a privately held company that provides silicon solutions for enterprise storage networks. SiliconStor is headquartered in Fremont, Calif. and has approximately 30 employees.

SiliconStor provides storage technology focused on the SATA (serial ATA) and SAS (serial attached SCSI) markets and is shipping patent-pending products that improve the performance, reliability, and manageability of SATA drives when used in a SAS environment.

The acquisition of SiliconStor aligns with the LSI strategy to offer server and storage system customers complete solutions including IC (integrated circuit) controllers, ROC (RAID-on-Chip), expanders, RAID software, and HBAs (host bus adapters) for the fast growing SAS infrastructure.

With the addition of SiliconStor technology, LSI will be positioned as one of the only storage building block suppliers to offer a solution for all nodes in the storage systems architecture.

"As the demand for low cost, high-capacity storage solutions with reliable connectivity continues to grow, we are seeing a significant increase in the use of SAS and SATA disk drives in enterprise applications," said Bill Wuertz, senior vice president, Storage Components Group, LSI Logic. "The SiliconStor acquisition, in combination with our industry leading line-up of SAS controllers, will enable LSI to offer a complete portfolio of interoperable SAS, SATA, and software building blocks."

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