LSI Logic Acquires Velio, CrossLayer Networks
April 05, 2004
LSI Logic is acquiring Velio Communications, a provider of high-speed interconnect and switch fabric ASSPs, in a cash transaction valued at approximately $20 million. The company also acquired the assets of another startup, CrossLayer Networks, for an undisclosed amount. CrossLayer is a provider of Gigabit Ethernet switch ASSPs.
The Velio purchase will expand LSI Logic's standard products offerings in the global communications market. Velio products include high-bandwidth data switch fabric, TDM STS-1 switch fabric and related SerDes devices, high-performance interconnect for SAN and engineering services.
Velio began life in 1998 as Chip2Chip, which specialized in IC design services, but soon after launching changed its strategy to focus on high-end switch chips. The company, which changed its name to Velio in 2000, collected $50 million in venture capital funding.
In Dec. 2003, Velio sold certain I/O technology assets to Rambus so it could focus on developing its family of switch fabrics and SerDes devices.
(See our profile of Velio in the July 2001 issue of InsideChips.Ventures.)
Mike Ofstedahl, CEO; Tel: 650 855-9201; www.velio.com.
John D'Errico, LSI Logic exec. VP of storage and communications components; Tel: 408 954-3108; www.lsilogic.com.