NetApp completes $480M purchase of LSI unit
NetApp completed its acquisition of the Engenio external storage systems business, the company said Monday. The business data storage company announced the $480 million deal with LSI Corp. in March.
The deal will allow NetApp to potentially expand its market reach. Engenio generated $705 million in revenue in 2010.
Engenio is an original equipment manufacturer, which means it makes products that are marketed under other company's brands. The business will be folded into NetApp's OEM group.
LSI said proceeds from the sale will be used to buy back stock.
Shares of NetApp Inc. rose 12 cents to $53.42 in midday trading Monday. LSI shares rose 11 cents to $7.62.