QLogic Snares AdaptiveRAID
QLogic Corporation has acquired the AdaptiveRAID technology from Borg Adaptive Technologies Inc., a wholly-owned subsidiary of nStor Corporation, for $7.5 million in cash. As part of the transaction, QLogic will assume a facility lease in Boulder, Colo., where it plans to open a design center.
"By adding the AdaptiveRAID technology and the associated engineers to QLogic's resource pool, the Company is preparing for the development of new I/O interfaces, such as InfiniBand," reveals H.K. Desai, QLogic's Chairman, President and CEO. "We expect deployment of InfiniBand-based technologies to occur in the next several years. These new interfaces will require enhanced software and hardware I/O capabilities."
QLogic will account for this transaction in its fourth fiscal quarter ending April 2, 2000, and will evaluate the allocation of the purchase price to the assets acquired. Such assets include in-process technology that will be written-off in the fiscal quarter ending April 2, 2000, and goodwill associated with AdaptiveRAID technology, which will be amortized over its useful life. The impact of the in-process technology write-off is expected to be material to the Company's fiscal fourth quarter earnings. Excluding the in-process technology write-off, the impact of the purchase to earnings in fiscal 2000 is expected to be immaterial.
For more information about QLogic, visit their Web site at www.qlc.com.