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May 11, 2010
PMC-Sierra Agrees to Acquire the Channel Storage Business From Adaptec
By Jai C.S.
TMCnet Contributor
PMC-Sierra, Inc., a provider of Internet infrastructure semiconductor solution, has entered into a definitive agreement with Adaptec, Inc., provider of innovative data storage hardware and software solutions, to acquire its channel storage business.
The sale agreement covers Adaptec (News - Alert)'s RAID storage product line, a well-established global value added reseller customer base, board logistics capabilities, and leading SSD cache performance solutions.
'The acquisition of Adaptec's channel storage business allows us to accelerate our entry into a new segment of enterprise RAID storage and leverages our leading RAID chip and software development with channel customers,' Greg Lang, PMC-Sierra (News - Alert)'s president and chief executive officer said.
'I am excited about this acquisition and the future growth opportunities it presents through the strong strategic fit between our core strengths in enterprise storage and the established channel storage business of Adaptec,' Lang added.
As stated, PMC-Sierra will pay approximately $34 million in cash for the acquisition and assume certain liabilities related to the business. The transaction is expected to close in approximately 30 days, subject to customary closing conditions.
PMC-Sierra expects the acquisition will strengthen the Company's existing enterprise storage business by accelerating access to channel customers.
Also, PMC-Sierra expects to employ approximately 90 individuals from Adaptec located in seven different geographies, with the majority of the personnel located in California.
Jai C.S. is a contributing editor for TMCnet. To read more of Jai's articles, please visit his columnist page.Edited by Alice Straight
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