MILPITAS, CA March, 24 - 2004 - LSI Logic Corporation (NYSE: LSI) today announced an agreement to acquire privately held Velio Communications, Inc. in a cash transaction valued at approximately $20 million. Palo Alto-based Velio Communications is a leading provider of high-speed interconnect and switch fabric application specific standard products (ASSPs).
"Velio's interconnect expertise will enable LSI Logic to offer a more robust portfolio of solutions and quicker time-to-market for competitive products addressing the unique needs of worldwide communications customers," said John D'Errico, LSI Logic executive vice president of Storage and Communications Components. "We are looking forward to working with Velio’s team in developing significant system advances in the design of communications platforms."
The purchase will expand LSI Logic’s standard products offerings in its targeted global Communications market. Velio products include high-bandwidth data switch fabric, TDM STS-1 switch fabric and related SerDes devices, high-performance interconnect for SAN and engineering services. In addition, the company will further strengthen its customer relationships with Velio’s global customer base. The transaction is expected to close in April and is anticipated to be slightly dilutive to earnings per share based upon GAAP* and neutral on an excluding special items** basis in 2004.
LSI Logic also announced the acquisition of the assets of privately held CrossLayer Networks, a provider of Gigabit (Gbit) Ethernet switch ASSPs. CrossLayer’s highly integrated solution complements LSI Logic’s existing 10/100 Ethernet Switching solutions targeted for Desktop Gbit connectivity and networking.
About Velio
Velio is a premier provider of high-bandwidth silicon solutions that enable the scaling and evolution of telecom, storage, and enterprise networking systems. Utilizing innovative design techniques and system-level expertise, Velio designs, manufactures and markets standard and custom products that extend the life of existing customer platforms and address the challenges of next-generation architectures. Velio products, offering unprecedented levels of integration and signal integrity, are shipping in volume to top-tier OEM customers worldwide. For more information on Velio Communications, visit http://www.velio.com/.
About LSI Logic
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of communications, consumer and storage semiconductors for applications that access, interconnect and store data, voice and video. In addition, the company supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1621 Barber Lane, Milpitas, CA 95035. http://www.lsilogic.com/.