LSI to Focus on Storage

By Greg McNevin

August 24, 2007: In a bid to refocus on its storage business, LSI Corp. has decided to sell of its mobility products business to Infineon for US$450 (AU$548) million.

LSI says the deal will enable it to “realign its resources” towards its storage systems and storage and networking semiconductor businesses, a move that will also see it buy back US$500 (AU$609) million of its stock with the proceeds of the sale.

“The sale of our mobility business will allow us to further focus our efforts on attractive market opportunities in storage and networking, where we have a strong presence, significant differentiation and the scale needed to be successful over the long term,” said Abhi Talwalkar, LSI president and chief executive officer.

LSI also indicated that funds from the sale will be set aside for potential future acquisitions in the storage and networking spaces.

The transaction is expected to close in the fourth quarter of 2007.

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