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Seagate closes acquisition of SSD controller businesses from Avago

Seagate Technology on Tuesday said it has completed its acquisition of the assets of LSI’s accelerated solutions division (ASD) and flash components division (FCD) from Avago Technologies. The closing of the takeover transforms Seagate into a leading developer of controllers for solid-state drives for various applications.

The hard disk drive maker announced plans to accelerate its roadmap in the growing flash storage market, which is about time since the company continues to remain a small supplier of SSDs and solid-state storage solutions. According to Seagate, the ASD business has the broadest PCIe flash product offering and intellectual property in the market today. The FCD business has SandForce-branded SSD controllers with proven support for a wide range of applications.

“There is a growing opportunity for mobile and enterprise flash-based storage solutions, which is why we’re excited about this strategic technology acquisition,” said Steve Luczo, chairman and CEO of Seagate. “Integrating LSI’s enterprise PCIe flash and SSD controller products, and its engineering capabilities into Seagate’s leading storage technology portfolio and product development will expand our ability to meet a broader base of customers’ needs and drive new revenue opportunities.”

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It will naturally take years before Seagate becomes a large supplier of solid-state drives, but the company’s positions are not bad. Seagate has a NAND flash supply agreement with Samsung Electronics, its own SSD experts and now its own controllers. Looks like Seagate is finally on-track to offer competitive SSD products.

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KitGuru Says: It will be interesting to see how Seagate’s competitors respond to the company’s plans to broaden its presence on the market of solid-state storage products. Western Digital will probably have to boost its investments in SSDs, whereas traditional SSD makers will probably have to play with prices to stay competitive.

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