Seagate To Buy LSI's Flash Businesses From Avago For $450 Mln - Quick Facts

(RTTNews) - Seagate Technology plc (STX) and Avago Technologies Limited (AVGO) announced they have entered into a definitive asset purchase agreement under which Seagate will acquire the assets of LSI's Accelerated Solutions Division and Flash Components Division from Avago for $450 million in cash.

Seagate said the acquisition strengthens its strategy to deliver a full suite of storage solutions. In fiscal 2015, Seagate would expect the combination of its enterprise SSD product line and these SSD Controller families to generate revenues of at least $150 million and be slightly accretive to the company gross margin with operating margin headwind of $30 to $40 million. The company would expect the operating margin contribution from its SSD business to be neutral to positive in fiscal 2016 and beyond.