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LSI Laps Up Infineon's Disk Drive Biz

LSI is grabbing the hard disk drive assets of Infineon for an estimated $150 million in a bid to boost LSI's storage presence at a time when disk sales are booming.

In a statement this morning, Ruediger Stroh, general manager of LSI's storage peripherals group, described the plan: "We expect the acquisition to immediately accelerate revenue with a top-tier customer, Hitachi Global Storage Technologies (HGST), while enhancing our competitive position in the desktop and enterprise space."

Only a "very small number" of Infineon employees, none of which are execs, will be moving over to LSI, according to LSI spokesman Robert Guenther, who confirmed that the workers will become part of LSI's storage peripherals group.

The Infineon deal is the latest in a barrage of M&A moves from LSI, which include acquiring content accelerator Tarari for $85 million and selling LSI's mobile business unit to Infineon for $450 million last year.

Although LSI would not reveal the value of today's deal, Caris Research analyst Shebly Seyrafi estimates that the purchase price is likely to be at least $100 million.

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