LSI Logic is to acquire the assets of IBM’s Mylex business unit, comprising RAID (Redundant Array of Independent Disks) controllers, subsystems, hardware and software technologies.
LSI Logic will use the purchase method of accounting for the acquisition. The cash transaction is anticipated to close during LSI Logic’s third quarter ending September 30th and is expected to be accretive to LSI Logic earnings.
LSI Logic will also acquire Mylex’s hardware and software engineers and sales representatives.
In addition, the company will have access to the Mylex sales channels and a customer base that includes IBM, NEC, Fujitsu-Siemens, Xyratex and Eurologic.