More: LSI Logic Agrees to Acquire Symbios, Inc. From Hyundai
in $760 Million Transaction
MILPITAS, Calif., June 29 /PRNewswire/ -- LSI Logic Corporation
(NYSE: LSI) and Hyundai Electronics America (HEA) today announced a
definitive agreement under which LSI Logic will acquire Symbios, Inc.,
HEA's wholly owned subsidiary, for $760 million, including assumed
liabilities, payable in cash.
LSI Logic anticipates completing the acquisition in its third
quarter ending September 30, and expects the transaction, which will
be accounted for as a purchase, to be accretive to the company's
earnings per share in 1999. LSI Logic noted that it will take certain
in-process Symbios technology write-offs in 1998 as a result of the
transaction.
Upon completion of the transaction, Symbios, Inc. will be a wholly
owned subsidiary of LSI Logic Corporation. Based on 1997 financial
results, the combined revenues of the two companies in that year
would have been approximately $1.9 billion.
"This strategic acquisition will substantially broaden our product
portfolio, significantly enhance our growth opportunities, build value
for our shareholders, and benefit the employees of both LSI Logic and
Symbios," said Wilfred J. Corrigan, LSI Logic chairman and chief
executive officer.
"We are pleased that a company of LSI Logic's stature in the global
system-on-a-chip market will embrace Symbios," said Dr. C.S. Park,
CEO and president of Hyundai Electronics America. "We fully anticipate
that Symbios will continue to grow and prosper in the coming years and
will become an essential part of the LSI Logic success story."
Symbios, Inc. designs, manufactures, and markets client/server
integrated circuits, cell-based application specific integrated
circuits (ASICs), host adapter boards (HABs), and storage subsystems.
The company, which had 1997 revenues of $620 million and operating
income of $70 million before non- recurring charges, is a leader in
the small computer system interface (SCSI) chip and the global disk
and tape-drive electronics markets.
"This major acquisition reflects our strategy of further
penetrating the high-end computing and storage markets," said
Corrigan. "The products manufactured by Symbios complement the
offerings we already provide to LSI Logic customers. This strategic
fit solidifies LSI Logic's position as a top worldwide producer of
system-on-a-chip solutions and establishes LSI Logic as a leader in
the global storage market."
Hyundai Electronics America acquired Symbios, Inc. in 1995. Prior to
the Hyundai acquisition, Symbios was operated as the Microelectronics
Products Division of AT&T Global Information Systems. Symbios was
originally established as a division of NCR Corporation in 1972.
Completion of this transaction is subject to regulatory approval and
other customary closing conditions.
Safe Harbor for forward looking statements: The statements in this
news release relating to 1999 earnings per share and 1998 in-process
technology writeoffs, involve known and unknown risks and uncertainties,
which may cause the company's actual results in future periods to be
materially different from any performance suggested in this release.
Such factors may include, but may not necessarily be limited to
fluctuations in customer demand, both in timing and volumes, and in
currency exchange rates. Also, the company's ability to have available
amount of production capacity in a timely manner can significantly
impact the company's financial performance. The timing of new
technology and product introductions and risk of early obsolescence
are also important factors. Further, the company operates in an
industry sector where securities values are highly volatile and may be
influenced by economic and other factors beyond the company's control.
In the context of forward-looking information provided in this news
release, reference is made to the discussion of risk factors detailed
in the company's filings with the Securities and Exchange Commission
during the past 12 months.
LSI Logic Corporation (NYSE: LSI), The System on a Chip Company(R),
is a leading supplier of custom high-performance semiconductors with
operations worldwide. The company enables customers to build complete
systems on a single chip with its CoreWare(R) design program, thereby
increasing performance, lowering system costs and accelerating time to
market. LSI Logic develops application-optimized products in
partnership with trendsetting customers and operates leading edge,
high-volume manufacturing facilities to promote submicron chips. The
company maintains a high level of quality, as demonstrated by its ISO
9000 certifications. LSI Logic is headquartered at 1551 McCarthy
Blvd., Milpitas, California 95035, 408-433-8000,
lsilogic.com .
Hyundai Electronics America, headquartered in San Jose, California, is
a U.S. subsidiary of Hyundai Electronics Industries Co., Ltd., based
in Seoul, Korea.
Symbios, Inc., headquartered in Fort Collins, Colorado, creates
solutions for moving and storing information. The company focuses on
developing partnerships with its customers, including original
equipment manufacturers and resellers in the storage, server,
peripherals, and communications markets.
/CONTACT: Media: Kevin Brett, 408-433-7150, or Investors: Diana Matley, 408-433-4365, both of LSI Logic Corporation/
o~~~ O |
