MILPITAS, Calif., March 10 -- LSI Corporation (NYSE:LSI) today announced that it has signed a definitive agreement to acquire the assets of the hard disk drive semiconductor (HDD) business of Infineon Technologies AG (FSE/ NYSE: IFX).
"Through the addition of the Infineon HDD business, LSI has taken another significant step toward becoming the leading worldwide provider of silicon solutions for hard disk drive makers," said Ruediger Stroh, executive vice president and general manager, Storage Peripherals Group, LSI. "We expect the acquisition to immediately accelerate revenue with a top-tier customer, Hitachi Global Storage Technologies, while enhancing our competitive position in the desktop and enterprise space."
The agreement calls for LSI to purchase the assets and intellectual property of the Infineon HDD business, which includes product designs, related software, inventory and test equipment. LSI also will enter into additional agreements with Infineon, including intellectual property, design services, transition services, and supply agreements. The transaction is expected to close within 60 days and is subject to the satisfaction of customary closing conditions and regulatory approvals. Financial terms are not being disclosed.
LSI expects the acquisition to be neutral to slightly accretive to non-GAAP* earnings per share in 2008. The company expects to provide further details in April when it reports first quarter results.
* GAAP refers to Generally Accepted Accounting Principles. Non-GAAP
earnings per share exclude 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 equity securities and acquired in-process research and development.
It also excludes the income tax effect associated with the above
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 http://www.lsi.com/.
Source: LSI Corporation
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