Adaptec Announces $34 Million Sale of RAID Storage Business to PMC-Sierra Inc.


Mar 17, 2010
PMC-Sierra Announces Agreement to Acquire the Channel Storage Business From Adaptec

SANTA CLARA, Calif., May 10, 2010 (BUSINESS WIRE) --PMC-Sierra, Inc. (Nasdaq:pMCS), the premier Internet infrastructure semiconductor solution provider, today announced the Company has entered into a definitive agreement with Adaptec, Inc. (Nasdaq:ADPT) to acquire its channel storage business. The channel storage business includes Adaptec's RAID storage product line, a well-established global value added reseller customer base, board logistics capabilities, and leading SSD cache performance solutions. 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. PMC-Sierra is committed to delivering and developing high-performance, reliable RAID solutions for our OEM and channel storage customers from SAS-1 to SAS-3. Based on industry data, PMC-Sierra estimates total channel revenues for x86 RAID products to be approximately $200 million. Adaptec is the second largest supplier of x86 RAID products through the channel.

"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," said Greg Lang, PMC-Sierra's president and CEO. "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."

PMC-Sierra expects to employ approximately 90 individuals from Adaptec located in seven different geographies, with the majority of the personnel located in California.

Adaptec Announces $34 Million Sale of RAID Storage Business to PMC-Sierra Inc.