ADPT to buy another company. See
businesswire.com
BW0202 APR 08,1998 13:37 PACIFIC 16:37 EASTERN
( BW)(ADAPTEC/RIDGE-TECH)(ADPT) Adaptec Will
Acquire Ridge Technologies; Forming New Storage Systems
Division
Business Editors and Computer Writers
MILPITAS, Calif.--(BUSINESS WIRE)--April 8, 1998--Adaptec, Inc.
announced today that it has signed a letter of intent to acquire Ridge
Technologies, a San Jose-based company focused on storage solutions for
NT servers.
The all-stock transaction is valued at $21.2 million. At the same time,
Adaptec said it intends to form a new Storage Systems division that
combines Ridge with Adaptec's RAID and Fibre Channel business.
Upon close of this transaction, the Storage Systems division will be led by
Division president Bob Graham, the current president and CEO of Ridge,
and will offer a broad spectrum of storage system products, including Ridge's
forthcoming NT-based storage products currently under development.
"As storage takes center stage in the enterprise, we see a great
opportunity to serve the growing storage needs of our system OEM and
distribution customers with integrated solutions to protect and manage their
most valuable asset -- data," said Grant Saviers, Adaptec chairman, CEO
and president. "To support this vision we are creating a Storage Systems
division within Adaptec which will combine the full spectrum of internal and
external RAID controllers, Fibre Channel, and storage subsystems necessary
to define and deliver Storage Area Networks of the future."
"Adaptec clearly recognizes exploding opportunity in the RAID and
storage sectors," said Bob Graham of Ridge Technologies. "The combination
of Adaptec's broad I/O technology base and Ridge's concentration on
easy-to-manage NT subsystems will result in fully integrated, innovative
storage solutions."
The new division will focus on delivering file management software, Fibre
Channel technologies, RAID, and storage subsystem controllers for both
host and external environments, file management acceleration technologies,
and complete subsystems for the NT environment.
When completed, 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
3500 people worldwide in design, manufacturing, sales, service and
distribution. Adaptec's home page is adaptec.com.
About Ridge Technologies, Inc.
Founded in 1997, Ridge Technologies specializes in solutions for the
rapidly expanding storage subsystems business, a leading sector of growth in
the storage market. Ridge focuses on high-quality, easy-to-administer,
lower-cost and highly available storage solutions for mid-range NT servers,
with emphasis on RAID (Redundant Array of Independent Disks) and Fibre
Channel technologies. Ridge's home page is
ridgetechnologies.com.
--30--ba/sf*
CONTACT: Adaptec
Adam Trunkey, 408/957-6761
atrunkey@corp.adaptec.com
or
Krause-Taylor Associates
Mary Devincenzi, 408/559-1820
mary@krause-taylor.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS
MERGERS/ACQ
Good Luck.
Doug |
