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QLogic Eyes SilverStorm

QLogic is closing in on its second InfiniBand acquisition of the year, with switch vendor SilverStorm in its crosshairs, according to industry sources.

For now, neither side is confirming the deal. QLogic marketing VP Frank Berry declined to comment, and SilverStorm CEO Russ Hawkins denied a sale is in the works, saying, "It's news to me, and I think I would know."

But sources close to the companies say QLogic has signed a term sheet to acquire the King of Prussia, Pa.-based private company for around $60 million in a cash transaction.

SilverStorm sells InfiniBand directors, switches, and host channel adapters (HCAs) -- the InfiniBand equivalent of HBAs -- as well as software to implement, manage, and provision InfiniBand gear.

SilverStorm, which changed its name from InfiniCon in May 2005, has about 90 employees and has raised $68 million in funding, with its latest round bringing $13 million in January. (See SilverStorm Gathers Cash.) The company has OEM deals with IBM, Fujitsu, and other server vendors and supplies director switches to InfiniBand rival Cisco. Its customers include the U.S. Department of Defense, NASA, Sandia National Laboratories, Virginia Tech University, Toyota, Lockheed Martin, and Chevron.

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