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ShareAdaptec to Buy Eurologic?
Posted by byteandswitch.com on March 27, 2003
Adaptec Inc. (Nasdaq: ADPT) is in talks to acquire storage subsystem manufacturer Eurologic Systems in a move to beef up its SAN storage offerings, sources tell Byte and Switch.
Adaptec executives this week are visiting Eurologic's U.S. offices in Boxborough, Mass., to interview the remaining employees there about whether they'll be joining Adaptec, according a source who requested anonymity. Eurologic, based in Dublin, Ireland, sells network storage hardware and software through systems OEMs and other indirect channels.
Sources put the price tag of the potential deal at around $50 million. Adaptec certainly has the money in the bank to make an acquisition of this size: As of Dec. 31, 2002, it had about $380 million cash on hand.
"I think it's a done deal," says the source. "If they haven't actually signed papers, it's far enough down the road that there are people who know whether they're going to be kept or whether they're going to be let go." One of the provisions of the deal, says this source, is that Adaptec would agree to not lay off anyone at Eurologic's Clonshaugh facility in Dublin for at least six months.
Adaptec and Eurologic representatives declined to comment for this story.
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