Adaptec continues buying spree
Adaptec Inc. extended its acquisition spree with the April announcement that it intends to purchase Ridge Technologies. While the $21.2 million price tag could portray Ridge as a minor storage vendor, the pending acquisition holds significant meaning for Adaptec as it looks to diversify its technology and product base.
The Ridge announcement came just seven weeks after Adaptec announced its intention to acquire Symbios for $775 million. In fact, at the time of the Ridge announcement, Federal Trade Commission (FTC) officials were still mulling over the Symbios-Adaptec merger. Because of the divergent product areas, Ridge president and CEO Bob Graham doesn`t expect the Ridge announcement to negatively affect FTC approval of the Symbios purchase.
"Obviously we wouldn`t have done this combination if we didn`t think it was symbiotic," says Graham. "The combination of Ridge, Symbios, and Adaptec brings together a very strong product portfolio with a focus on both the OEM market and channels."
With approvals on both acquisitions still pending at press time, officials at Ridge, Symbios, and Adaptec could not comment on specific integration of their respective products. The Ridge acquisition is expected to be approved sometime next month, while the Symbios acquisition could be approved as early as this month.
Graham will head a still-unnamed storage division that will offer a wide range of products, focusing on Fibre Channel technologies and storage area-networks (SANs). The products, which include Fibre Channel adapters, file management acceleration software, and host and subsystem controllers, were already in development, and are expected to help leverage existing Adaptec investments.
"With the intellectual and engineering resources here at Adaptec, I think it really gives us an opportunity to provide customers in the future with a system solution," says Graham. "Adaptec has invested a lot of money in Fibre Channel, and with Fibre Channel being the key to SANs, I think that gives the combined companies a greater opportunity to have a combination of technology and software that should allow for some interesting SAN solutions."