Sun Microsystems to acquire data storage pioneer LSC
Under the terms of the agreement, Sun will acquire LSC in a stock-for-stock transaction worth approximately $74 million. This acquisition will be accounted for as a purchase and in-process R&D charges are expected to be immaterial. Going forward, Sun expects the combined results of LSC and its existing storage business to be accretive to Sun's proforma earnings.
This acquisition is subject to governmental approval and the approval of LSC's stockholders, as well as customary closing conditions. Following completion of the acquisition, Sun plans to make LSC a part of Sun's Network Storage organization, led by Executive Vice President Janpieter Scheerder.
"The acquisition of LSC is just one more execution point in our strategy to deliver dramatically simplified management software for open storage networks," said Scheerder. "Sun has invested heavily in storage software, developing over one million lines of code. Today's announcement, combined with the recent HighGround Systems acquisition announcement, reinforces Sun's position as a leader in open storage management software."
LSC provides a hierarchical data-sharing file system and storage system software designed to enable Sun's customers to intelligently share, place, backup and archive data with automation and ease, resulting in efficient use of their storage resources.
The company's flagship products, Storage and Archive Manager-File System (SAM-FS) and Quick File System (QFS), are advanced storage management solutions designed to deliver high performance and automated file and media management to data intensive applications.
"LSC's technology is expected to expand Sun's network-centric data services architecture to deliver easy-to-use tools for end-to-end data management," said Brad Balogh, CEO of LSC. "Sun is already a major force in the storage market. When LSC's advanced storage software and broad customer base are combined with Sun's strong sales force and its ability to offer complete systems solutions, Sun should further increase its presence in the world of easily managed storage."
In December, Sun announced its intent to acquire Marlborough, Massachusetts-based HighGround Systems, Inc., a provider of storage resource management solutions for distributed open systems environments. This acquisition is subject to governmental and shareholder approvals, as well as customary closing conditions.
About LSC
Headquartered in Eagan, Minnesota, LSC designs, develops, and supports advanced storage management software for open systems, marketed through a network of OEMs, resellers, and integrators. LSC's QFS and SAM-FS (Storage Archive Manager) software, is the product of choice for organizations that require smart, innovative and secure data management. LSC's solutions provide a combination of performance, scalability, reliability and features that have won it worldwide acceptance. Information on LSC is available on the World Wide Web at http://www.lsci.com, by calling 1-800-831-9482, or writing to 1270 Eagan Industrial Road, Suite 160, Eagan, MN 55121-1231.
About Sun Microsystems, Inc.
Since its inception in 1982, a singular vision - The Network Is The Computer[tm] -- has propelled Sun Microsystems, Inc., to its position as a leading provider of industrial-strength hardware, software and services that power the Internet and allow companies worldwide to dot-com their businesses. With $17.6 billion in annual revenues, Sun can be found in more than 170 countries and on the World Wide Web at http://sun.com.