*AV*--Adaptec Acquires Symbios. Puzzle solved. ADPT buys all the stock in Symbios from Hyundai for cash and borrowings.
Thursday February 19, 4:07 pm Eastern Time
Company Press Release
MILPITAS, Calif.--(BUSINESS WIRE)--Feb. 19, 1998--Adaptec, Inc.
announced today that it has signed an agreement to acquire Symbios
Inc. in a cash transaction valued at $775 million, including
assumed liabilities.
Symbios, a privately held company based in Ft. Collins, Colo., is a
wholly owned subsidiary of Hyundai Electronics America. Symbios' 1997
revenues were approximately $620 million, and the company employs
about 2500 people worldwide. Completion of the transaction is subject
to regulatory approval under the Hart-Scott-Rodino Act.
Adaptec chairman, CEO and president Grant Saviers said, ''We believe
this move will benefit our markets, our customers and the employees of
both Adaptec and Symbios. These two companies have been focused on the
goal of better information movement inside computers and between
computers, peripherals and networks. We believe this combination will
allow us to bring new customers and relationships into the fold. We
are delighted with this acquisition and believe it will enhance our
opportunity for long-term growth.''
Dr. C.S. Park, CEO and President of Hyundai Electronics America, said:
''We are excited that a company of Adaptec's experience and market
ability has embraced this excellent organization. We expect Symbios to
continue on the great growth path that it has established as a part of
Hyundai and as it becomes an integral component of a new and larger
Adaptec.''
Assuming the necessary regulatory clearances are obtained, Adaptec
will complete the transaction by purchasing all of the outstanding
stock of Symbios for cash, using a portion of Adaptec's cash reserves
and some borrowings.
This acquisition will be accounted for under the purchase accounting
method. Adaptec will evaluate the allocation of the purchase price to
assets acquired, which include in-process technology that will be
written off, and goodwill which will be amortized over the benefit
period.
About Adaptec
Adaptec provides bandwidth management technologies for organizations
building the global information infrastructure. Its high performance
I/O, connectivity, and network products are incorporated into the
systems and products of major computer and peripheral manufacturers.
Founded in 1981 and headquartered in Milpitas, Calif., Adaptec
(NASDAQ:ADPT) employs 3,500 people worldwide in design, manufacturing,
sales, service and distribution. Adaptec's home page is
adaptec.com. |
