Tom: During the conference call after the earnings release on 30 April, an Adaptec senior officer said he was looking at closing the deal by the end of this quarter, meaning late June. Originally, when the deal was announced in mid-February, the expectation was to close in 90 days, but the FTC (I think) recently requested additional documents, delaying the deal.
As for analyst projections of an Adaptec with Symbios, I haven't seen any. That Symbios is a non-traded subsidiary of a foreign corporation, there is not much public data on which to base projections. According to press at the time of the announcement, Symbios had sales of about $620 million and profits of $69 million. It also has a couple of fabs: an 8-inch CMOS facility in Colorado Springs and a 6-inch fab in Fort Collins, Colorado.
The deal is called "all-cash" for $775 million. I think Adaptec said in the conference call that it would cough up $450 million cash initially and use a $250 million bond issue to pay down a bank loan for the rest. This means, I suppose, Adaptec will not be using all its cash reserves of nearly $700 million to pay for the acquisition. But I am very foggy on the purchase arrangements.
If you find more, please let us know.
Starowl
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