NetApp to purchase LSI's Engenio external storage systems
NetApp (NASDAQ: NTAP) recently announced that it has entered into a definitive agreement to purchase the Engenio external storage systems business of LSI (NYSE: LSI), headquartered in Milpitas, California, in an all-cash transaction for $480 million. The close is anticipated to occur in approximately 60 days subject to customary closing conditions. The transaction is expected to be accretive to NetApp’s GAAP and non-GAAP earnings per share by the end of the second quarter of its 2012 fiscal year, informed the company.
“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. We believe that the synergies between NetApp and Engenio will create a compelling combination that will help us continue to scale our business and fuel our continued growth,” remarked Tom Georgens, president and CEO, NetApp.
As per the agreement, NetApp, a provider for shared, virtualized IT infrastructures, gains the team from Engenio with engineering expertise that will continue to develop the Engenio platform and a team that is skilled at managing a mature, proven OEM business model with key industry partners.
The company further informed that, NetApp The Engenio business unit will be integrated into NetApp’s business functions and will be responsible for product development under Manish Goel, EVP of NetApp Product Operations.
“NetApp’s channel-friendly approach is highly synergistic with the Engenio model of enabling partner and customer success, and the combination should further advance the Engenio storage platform, as well as augment the OEM channels that have been the foundation of its longstanding success,” commented Abhi Talwalkar, president and CEO, LSI.
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