Emulex Agrees to Acquire Sierra Logic
biz.yahoo.com
Tuesday August 29, 4:46 pm ET
Emulex Agrees to Buy Sierra Logic for Up to $180M in Cash and Liabilities
COSTA MESA, Calif. (AP) -- Emulex Corp., which makes data-storage networking equipment, said on Tuesday it agreed to acquire Sierra Logic Inc., a privately held designer of semiconductors for storage networking equipment.
The transaction is valued at up to $180 million in cash, assumed debt and assumed Sierra Logic stock options, and employee equity incentive compensation.
The transaction has already been approved by the directors and shareholders of both companies, Emulex said. The acquisition is expected to close on or around Sept. 30.
Emulex said it will incur charges from the transaction, but could not say what the impact would be on 2007 earnings-per-share because the transaction value is not yet finalized.
The company said it expects the acquisition of Sierra Logic to be immaterial to its adjusted results for the September quarter. For the December quarter, Emulex the acquisition to contribute an incremental $8 million to $10 million in revenue, and a neutral impact on adjusted earnings per share.
"This acquisition solidifies Emulex's embedded multi-protocol strategy and is another critical step toward becoming the market leader in the end-to-end embedded storage components market," said Emulex Chairman and Chief Executive Paul Folino in a statement.
"The expansion of our embedded product portfolio also provides incremental revenue opportunities and we believe extends Emulex's addressable market for embedded storage components to more than $800 million, and the Company's total available market to $2.7 billion by 2009. Further, it builds upon our prior acquisition of embedded switch supplier, Vixel, as well as our joint development efforts with Intel," he added.
Sierra Logic employs about 70 employees, mostly engineers based at its location in Roseville, Calif. |
