PMC-Sierra to Acquire Adaptec's Channel Storage Business

PMC-Sierra has agreed to acquire Adaptec’s channel storage business, which includes its 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. PMC-Sierra expects to employ approximately 90 individuals from Adaptec located in seven different geographies, with the majority of the personnel located in California.

PMC-Sierra said the deal will strengthen its existing enterprise storage business by accelerating access to channel customers. The company is committed to delivering and developing high-performance, reliable RAID solutions for 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.
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http://www.adaptec.com