Adaptec spins off BroadLogic. Check the CyberStar post..............
Adaptec Announces Broadlogic, Inc.; Spin Off to Target Broadband Satellite Market
Business Wire - September 09, 1998 19:31
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MILPITAS, Calif.--(BUSINESS WIRE)--Sept. 9, 1998--Adaptec, Inc. today announced the formation of BroadLogic, Inc., to leverage its position as the leading developer of satellite equipment for the personal computer marketplace.
The independent company is a spin off of Adaptec's satellite networking business formed in May 1995.
"BroadLogic is in an exciting new emerging market, linking the PC with satellites that enable split-second communications to anywhere in the world," said Bob Stephens, Adaptec's chief operating officer. "Adaptec is enhancing BroadLogic's future success by providing them with the necessary resources to take advantage of the growing satellite communications equipment market."
The new company will focus on enabling PCs in broadband applications, including satellite, wireless and cable. The company will be based in Milpitas, and Toby Farrand will serve as president and CEO.
Adaptec will hold an equity position in the newly formed company and transfer certain products and technologies to BroadLogic. The companies expect to close the deal by Oct. 1, 1998.
New BroadLogic CEO and president Toby Farrand commented, "This is a very strategic move for Adaptec, because as an equity partner, they are going to share in BroadLogic's success and future profitability. Our mission is to be a preeminent enabler of connected PCs in the new communications industry."
BroadLogic will work with its partners to develop technologies that are based on broadband industry standards, and implement those capabilities in BroadLogic products.
"Adaptec has been instrumental in pioneering the PC-to-satellite communication link and had the vision to enter the market and establish itself as a leading equipment supplier to companies like CyberStar," said Ron Maehl, president of CyberStar, a Loral Company. "As the market matures and products begin to become available to businesses and consumers, BroadLogic and Adaptec are both well positioned for profitable success."
"One of the most promising niches in data communications is the distant MAN (metropolitan area networks) solution, to bring high-bandwidth connectivity to businesses and consumers who are off-fiber," said Brian Cotton, research director for wireless communications at Frost and Sullivan, a Mountain View, Calif.-based firm.
"This move by Adaptec establishes BroadLogic as a pioneer in this largely unfulfilled emerging segment of the telecommunications market."
About BroadLogic
BroadLogic, Inc. designs and manufactures broadband communications equipment for personal and enterprise based computers. Corporations, satellite service operators and content providers use the company's products to create broadband networks for multimedia broadcast and interactive services. Client solutions under development include products for: satellite, wireless, and cable systems conforming to international standards including DVB, TCP/IP, and MPEG. A partial list of industry partners include: DTN, CyberStar, Digital Express, EchoStar, Eutelsat and Media4.
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, Adaptec (NASDAQ:ADPT) employs people worldwide in design, manufacturing, sales, service and distribution. Adaptec's home page is adaptec.com.
CONTACT: Adaptec, Inc.
Adam Trunkey, 408/957-6761
or
BroadLogic
Jim Meyer, 408/957-7259
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