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Adaptec, IBM Get Cozier

Adaptec Inc. (Nasdaq: ADPT) is getting bigger as it deepens its relationship with IBM Corp. (NYSE: IBM).

Adaptec said late Tuesday that it acquired an IBM business unit and expanded an OEM deal to provide RAID controllers for Big Blue's servers (see IBM RAIDs Adaptec Controllers). And there might be another deal coming between the two.

Last April, Adaptec announced an expanded relationship with a Tier 1 OEM (see Adaptec Posts Q4 Profit). At the time, Adaptec executives gave cloudy forecasts placing the deals value at as much as $20 million in revenue in 2005 and $50 million in 2006. So is this latest announcement the deal that Adaptec discussed in April?

"No," says Ahmet Houssein, VP of Adaptec’s Storage Solutions Group. "We have one more coming. We will announce that shortly.”

Houssein estimates the RAID controller agreement will generate approximately $150 million in revenue over the next three years. However, he won’t say how much Adaptec will pay to acquire the IBM business unit -- which includes intellectual property, licenses, and personnel. Adaptec promises financial details when it reports its earnings July 29.

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