NetApp has moved to acquire the Engenio external storage systems business from chip maker LSI Corp in a $480 million all-cash deal.
The acquisition will allow NetApp, a storage and data management solutions provider, to expand its market reach with an already established OEM business, particularly in the server-attached and embedded storage market.
Engenio will also allow NetApp entry into the lucrative and emerging market segments like video, digital video surveillance and full motion video capture along with HPC applications.
The company, which expects the acquisition to be completed within the next 60 days, said that the all-cash deal will affect its GAAP and non-GAAP earnings per share at the end of the second quarter of 2012.
Tom Georgens, president and CEO of NetApp, said in a statement, “With Engenio we will have a strategic storage platform to capitalize on new, high-growth opportunities that we don't currently reach with our FAS platform. NetApp also gains a proven OEM-based revenue stream that is run by a talented Engenio team.”
NetApp said that the newly acquired business unit will be integrated with the company's existing business operations and product development team overseen by Manish Goel, executive vice president of NetApp Product Operations. The Engenio sales team will be combined with NetApp's sales force.