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Adaptec's $100M Snap Decision

Acquisition-hungry Adaptec Inc. (Nasdaq: ADPT) has plunked down $100 million to fill the biggest hole in its storage portfolio by snapping up NAS vendor Snap Appliance Inc.

Adaptec said Tuesday night it will pay $91 million in cash and assume $9 million in stock options for the NAS company that Quantum Corp. (NYSE: DSS) spun off 21 months ago (see Quantum Evicts NAS Unit). The companies expect the deal to be completed by the end of the month.

Snap, a company that focuses on a low-price, high-volume market, claims it is the NAS volume leader with more than 150,000 systems sold. Snap survived by avoiding the high-end NAS segment dominated by Network Appliance Inc. (Nasdaq: NTAP) and EMC Corp. (NYSE: EMC). Snap sells mostly to departments and workgroups. Its competition in that space, primarily Dell Computer Corp. (Nasdaq: DELL) and Hewlett-Packard Co. (NYSE: HPQ), sell NAS systems based on Windows, while Snap uses a proprietary GuardianOS operating system (see Snap Plans Poor Man's SAN and Snap Tackles Blocks).

The Adaptec product line already includes Fibre Channel and iSCSI SANs and SATA and SCSI drive controllers, sold primarily through OEMs (see Adaptec Delivers SAS ASIC, SATA Suppliers Ready for Onslaught, and Panel Prompts iSCSI Love-In).

"Its part of our aggressive strategy moving into external storage," Adaptec CTO Mark Delsman says of the Snap acquisition. "We’ve got block storage, Fibre Channel storage, and iSCSI storage. But we didn’t have anything to say about the NAS portion."

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