*AV*--More ADPT news. Apparently Symbios Management is not expected to hang around. The phrasing just brought a pang to my heart. It leads one to believe the only reason top management was hanging around was to dramatically enrich themselves in an IPO. Whew, Nasty!!!
Thursday February 19, 5:58 pm Eastern Time
Adaptec Symbios deal accretive in 1st year
SAN FRANCISCO, Feb 19 (Reuters) - Adaptec Inc said that its proposed
$775 million acquisition of Symbios, a unit of Hyundai Electronics of
America, will be accretive to earnings in its first year, with
positive cash flow from Symbios.
''It will be accretive, despite goodwill amortization,'' said Paul
Hansen, Adaptec's chief financial officer, in a conference call. ''We
expect it to be accretive right out of the shoot.''
Adaptec expects the deal to close in about 90 days, pending U.S.
regulatory approval.
Adaptec, a maker of electronics input/output components, said it will
pay mostly cash for Symbios, another components maker.
Adaptec, based in Milpitas, Calif., said that it currently has over
$700 million in cash on hand.
''We expect the bulk of the purchase price will come from our balance
sheet and the remainder will come from debt,'' Hansen said. He said it
was too early to estimate any potential charges that may result from the acquisition.
Adaptec officials said the current management of Symbios, based in
Fort Collins, Colo., does not plan to remain with the company, because
they had been hoping to do an initial public offering. Hyundai
recently announced it would sell Symbios and its bankers contacted
Adaptec two weeks ago.
''The Asian economic crises certainly played a role in this,''
Adaptec's Chief Executive Officer Grant Saviers said on the conference
call. ''We concluded negotiations in that very brief time frame.''
Saviers said that Adaptec had once looked at purchasing this business before, when it was owned by AT&T's Microelectronics business, before AT&T sold Symbios to Hyundai in 1995.
Adaptec said their products are compatible, with Adaptec addressing
the low end of the market such as PCs while Symbios targets bigger
systems such as servers running UNIX operating systems. Both
make components to speed the movement of data from a system to devices
such as storage systems. |
