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NORWOOD, Mass., and MILPITAS, Calif., March 24 /PRNewswire/ -- Analog
Devices, Inc. (NYSE:ADI) and Adaptec, Inc. (NASDAQ:ADPT) today announced
that Analog Devices will sell its read channel ASIC technology to Adaptec.
The agreement calls for an initial cash payment of $34 million, to be followed
by subsequent payments totaling $6 million for research and development
services during a transition period, and up to $20 million in royalties based
on sales by Adaptec of products incorporating the acquired ADI technology.
Grant Saviers, Chairman, CEO and President of Adaptec, said, "This
purchase provides a strong foundation for our future. Mass information
storage is becoming an increasingly important element in today's information
technology strategies. Acquisition of ADI's top-quality, mixed-signal, read
channel technology will sustain Adaptec's leadership position as the industry
moves to integrate more ASICs yielding smaller, higher performance storage
devices."
Jerald G. Fishman, President and Chief Executive Officer of Analog
Devices, said, "Adaptec's offer to buy our read channel technology is a strong
endorsement of ADI's engineering excellence. It also fits in with our
strategic decision to concentrate on other areas of our business, specifically
analog ICs and DSP products. As a result of this agreement, ADI is rewarded
for its technical innovation in this area and Adaptec is in a better position
to sustain its technical leadership in the mass storage arena."
Adaptec will account for this acquisition under the purchase method of
accounting. Adaptec will evaluate the allocation of the purchase price to the
assets acquired, which may include in-process technology that will be written
off, and goodwill, which will be amortized over the benefit period. |
