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Marvell buys storage IC unit for $225 million

Posted: 30 Aug 2005     Print Version  Bookmark and Share

Keywords:tape drive controller  semiconductor  cd roms  dvd  disk drive 

Expanding its efforts in storage, Marvell Technology Group Ltd announced a definitive agreement to acquire the hard disk and tape drive controller semiconductor business of QLogic Corp. for $225 million in cash and stock.

In the deal with peripheral-systems house QLogic, high-flying Marvell will gain a quick entry into some new and emerging markets. QLogic's peripheral controllers include devices for the stand-alone SCSI and Fibre Channel markets.

The fast architecture (FAS) family of I/O controllers are aimed for 8bitand 16bit SCSI applications in tape drives, CD ROMs, DVDs, disk drives, RAID storage boards, host adapters, and many other peripheral products. QLogic's TEC/FTEC/STEC product family offers SCSI, Fibre Channel, and SAS controller solutions for hard disk drivers and other products.

"These proven products and technologies will further expand our world class capabilities as the leader in the storage electronics market," said Sehat Sutardja, Marvell's president and CEO, in a statement.

Under the terms of the definitive agreement, Marvell will issue a combination of $180 million in cash and shares of Marvell common stock valued at $45 million. The acquisition is expected to close within sixty days following the satisfaction of regulatory requirements and other customary closing conditions.

On a pro forma basis excluding the amortization and write-off of acquired intangible assets and stock-based compensation, the transaction is expected to be accretive to Marvell's earnings per share.

- Mark LaPedus

EE Times

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