LSI Corporation (LSI) recently announced the completion of its SandForce Inc. acquisition deal. The intent of this venture is to enhance application performance using SandForce’s flash-based storage support features for the advancement of flash storage processors.
LSI has formed a new segment called Flash Components Division following the acquisition, which will be headed by the former CEO of the company, Michael Raam. Around 190 SandForce workers are employed here. The acquisition was previously valued at around $322 million. However, LSI will probably throw more light on the financials in its fourth quarter earnings release.
Having received favorable responses from its customers to this decision, management has expressed its ebullience on the acquisition. This is a positive sign for the company as it would now look to maximize customer satisfaction through its advanced technologies.
The flash storage devices produced now shall be used primarily in notebooks, ultrabooks, enterprise SSDs and for other flash solutions.
SandForce Inc. has retained its position as a market leader in flash storage systems and solid state drives (SSDs). They provide modern, reliable and long-lasting solutions using its DuraClass technology for improved standards of efficiency and productivity.
LSI has been very progressive with regard to innovating and improving its existing products. Prior to this acquisition, LSI merged with Advantech Collaborate in November 2011 to provide state-of-the art commercial platform solutions used in cellular phone applications to its customers.
We currently have a Neutral recommendation on LSI Corporation. The stock currently carries a Zacks #3 Rank, which translates into a short-term rating of Hold.
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