LSI to buy IntraServer for $70 mln

LSI Logic Corp. (NYSE: LSI) said Wednesday it will buy IntraServer Technology for about $70 million.

The acquisition is expected to add to LSI Logic's revenue and provide significant benefits to IntraServer's rapidly expanding customer base. The deal is expected to close during LSI Logic's second quarter ending June 30.

LSI shares were down 1 to 51 1/2 Wednesday morning, well below their 52-week high of 90 3/8. The company recently toppedestimates in its first quarter and predicted strong growth ahead.

The company said the acquisition will improve LSI Logic's host adapter board and other product offerings in the network computing and communications markets.

IntraServer is a privately held company which serves the high-performance, multi-function host adapter board market. IntraServer's customers include, Compaq (NYSE: CPQ), Sun Microsystems (Nasdaq: SUNW) and EMC (NYSE: EMC).

LSI's top competitors include Motorola (NYSE: MOT), Lucent (NYSE: LU) and NEC (Nasdaq: NIPNY), according to Hoover's Online.