ITEM: Adaptec Gains Symbios Fabs - Symbios LAN Controller Development Halted.
techweb.com
EETIMES, February 23, 1998, Issue: 994
Section: News
Adaptec snaps up Hyundai's Symbios
Fort Collins, Colo. - Symbios Inc. was sold last week to Adaptec Inc. (Milpitas, Calif.), which had made the best offer out of several suitors for the mixed-signal and ASIC specialist. Symbios' parent, Hyundai Electronics America Inc., spent the last few weeks in discussions with Adaptec, LSI Logic Corp., Intel Corp., Storage Technology Corp. and other companies regarding Symbios.
The all-cash transaction of $775 million is approximately 1.25 times Symbios' 1997 revenue. One banking source close to negotiations called the deal "good for Hyundai and Symbios, considering the desperation with which Hyundai seemed to want to sell." Adaptec chief executive Grant Saviers said the Korean economic crisis had affected the speed with which Hyundai looked to conclude a deal, and that Hyundai had been looking for mostly cash, or all cash, offers.
Hyundai, like other Korean companies, has been faltering in electronics due to the Asian financial crisis. Symbios, with a steady standard product market as well as an ASIC business serving the communications and computer industry, remains relatively healthy, though it had halted development work in some areas, such as LAN controllers.
Adaptec gains Symbios' 8-inch CMOS fabrication facility in Colorado Springs and a 6-inch fab in Fort Collins.
Copyright (c) 1998 CMP Media Inc. |
