NetApp Acquires Engenio Storage Business From LSI
NetApp, the storage networking equipment concern, said today it had reached a deal to purchase the Engenio storage business from chipmaker LSI for $480 million in cash. The move will bolster its place in the market for video and high-performance computing applications. LSI’s Engenio unit makes rack-mountable storage devices, and generated $750 million in sales in 2010. LSI said it would use the proceeds to fund a $750 million share buyback. LSI shares soared by nearly four percent in after-hours trading. NetApp shares finished the regular session down 11 cents, and appeared to be held for after-hours trading pending the end of a conference call discussing the deal.