NetApp to acquire Engenio from LSI

NetApp has revealed plans to acquire LSI’s external storage systems business, Engenio, for a sum of US$480 million. The deal is expected to be complete within 60 days, depending on closing conditions.

The acquisition comes as NetApp looks to fill gaps in its existing product line-up.

“With Engenio we will have a strategic storage platform to capitalise on new, high-growth opportunities that we don’t currently reach with our FAS platform,” said Tom Georgens, President and CEO at NetApp.

The acquisition will also provide NetApp with access to a several new markets - particularly those of server-attached and embedded storage - as well as Engenio’s existing revenue stream.

“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,” Georgens said.

Abhi Talwalkar, President and CEO, LSI, said: “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.”

The Engenio business will be integrated into NetApp’s existing operations. Manish Goel - Executive Vice President of Product Operations at NetApp - will head the unit.

The NetApp and Engenio sales teams will be merged, operating as a single entity.