Emulex snags Giganet for $645 million
Can our little Genroco be far behind???
Emulex snags Giganet for $645 million
By Bloomberg News
December 7, 2000, 4:00 p.m. PT
URL: news.cnet.com
COSTA MESA, Calif.--Emulex, a maker of equipment that speeds data transmission, said it will buy closely held Giganet for about $645 million in stock to expand its
product line.
The company said it would issue about 4 million shares and assumed options for Concord, Mass.-based Giganet. The price was based on Wednesday's closing price for
Emulex shares, which fell 44 cents to $155.31 Thursday.
Giganet makes computer circuitry cards that connect network attached storage devices, or NAS, said Emulex spokeswoman Robin Schung. Emulex's main products use
a different technology called fibre channel, which is used in a storage network configuration called storage area networks, or SANs.
Emulex anticipates taking take a noncash charge of about $10 million against earnings upon completion of the acquisition, most likely in the fiscal third quarter ending
April 1. The charge isn't expected to reduce per-share profit for the year ending July 1, the company said.
Costa Mesa, Calif.-based Emulex was expected to report fiscal third-quarter earnings of 37 cents a share and earnings of $1.43 a share for the year, according to the
average estimate of analysts surveyed by First Call/Thomson Financial. |
