LSI acquires SandForce for $370 million

SandForce has its foot deep down in many SSDs, but it looks like it's finally about to settle down, and get hitched. 

LSI announced plans to acquire the flash storage company, as part of a $370 million agreement. The deal brings SandForce's processors and energy efficient DuraClass technology under LSI's roof, giving the semiconductor designer some new flash firepower and an extra boost into a burgeoning market. Tangible results, of course, remain to be seen, though it's certainly not the first time these two have danced. SandForce, after all, provided the motor for LSI's WarpDrive lineup, and will presumably do much more, once the deal goes through. Pending regulatory approval, the acquisition should be finalized by the first quarter of 2012.

SandForce, meanwhile, has a more straightforward startup story: Founded in December 2006, the company raised $60 million in four rounds of venture capital from investors including DCM, Storm Ventures, TransLink Capital, UMC Capital, Red Maple Ventures, Darwin Ventures and Canaan Partners.

The $400 million payback to SandForce