Around six months ago, Avago has finalized a deal in which it acquired LSI and all their assets and today, we discover that Seagate is working on a deal with Avago, which will allow it to purchase two particular LSI departments, the Accelerate Solution Division (ASD) and the Flash Component Division (FCD).

This acquisition will give Avago US $450 million, which is a great deal for Avago, since it will be selling only two parts of the LSI and gain some money in the process.

Thanks to this acquisition, Seagate is the official owner of SandForce controllers and all the technologies around it, becoming one of the few companies that produces drives from scratch, just like Intel, Samsung and Toshiba are already doing. It is unclear whether Seagate will continue to sell SandForce controllers to third-parties or not.

Seagate CEO, Steve Luczo, noted that this acquisition will greatly reinforce his company, since they estimated 150 million dollars in gaining just in 2015. With reduced producing costs, easier provisioning and an SSD catalogue which is very likely to get bigger in the next few months, Seagate is definitely going to be an important player of the SSD market for the future.




Source: Le Comptoir du Hardware.