Adaptec to acquire DPT

Adaptec to acquire DPT

Zachary Shess

In a textbook move to expand its RAID controller product line, Adaptec Corp. announced plans early last month to acquire Distributed Processing Technology (DPT) for $235 million.

The privately held DPT, based in Maitland, FL, is a supplier of SCSI and Fibre Channel RAID controllers, adapters, and array enclosures.

"DPT enables us to have parallel product development efforts so that we produce a broader range of RAID products. The goal here is to have a set of RAID products that make it easy for customers to migrate from embedded RAID all the way up to the largest SAN solution," says Adaptec COO Bob Schultz.

Adaptec`s move follows IBM`s acquisition earlier this year of Mylex Corp., one of Adaptec`s and DPT`s largest competitors.

Industry analysts, including James Porter, president of Disk/Trend Inc., a market research firm in Mountain View, CA, say the merger reflects a straightforward attempt to garner additional market share. "Adaptec has spent years trying to overtake Mylex and American Megatrends. The real challenge now is going to be managing the staffs and product lines from opposite coasts," says Porter. Adaptec is based in Milpitas, CA.

The merger is also being viewed as a melding of complementary OEM customers. Adaptec`s OEM base is more NT- and NetWave-focused; DPT`s more Unix-oriented.

The purchase price will include cash for the outstanding DPT shares plus the costs of assuming the DPT stock option plan. The merger is expected to be finalized next month.

This article was originally published on December 01, 1999