Adaptec Acquiring Euro-based Storage Player

Data storage access provider Adaptec Monday said it will spend $30 million in cash to acquire Dublin, Ireland-based Eurologic Systems.

Founded in 1988, Eurologic works through OEMs and resellers to offer JBOD and RAID SCSI, Fibre Channel and Serial ATA products.

In its ten-year history, Eurologic said it has shipped approximately 148,000 total storage systems and has partnered with various server manufacturers, channel partners, and vertical applications solutions providers, such as Acer, Agfa, Avid, Bell Micro, Ciara Technologies, eSlim, Fujitsu Siemens, HCL, Intel, Mirapoint, Red Networks, Siemens Medical, Skydata, Stratus, Tech Data and Zycko.

Milpitas, Calif.-based Adaptec operates in three principal segments: Storage Solutions Group, Desktop Solutions Group and Storage Networking Group. The company said it would incorporate Eurologic into its Storage Solutions Group.

Adaptec said it will also take over all customer and supplier agreements and will continue to serve Eurologic customers. Prior to the acquisition, Eurologic divested its SAN software business into a separate entity, which will continue to operate independently.

The plan is for Adaptec to use Eurologic’s assets to add more block- and file-based networked storage products to its repertoire. Company CEO Robert Stephens said the acquisition would also give his company access to new sales channels and open new opportunities in key industries such as medical imaging and digital media.

“Combining Eurologic’s storage systems capabilities with Adaptec’s proven leadership in server storage connectivity and IP storage networking will enable us to provide OEMs and resellers with a single source for complete direct-attached and networked storage solutions, including iSCSI targets,” Stephens said in a statement.

Stephens said he expects the acquisition to be completed in April 2003. It is not known if all of Eurologic’s 150 employees will remain with Adaptec.

The company’s storage networking products include a family of IP Storage ASICs and adapters with protocol acceleration for iSCSI, FCIP, FC-iSCSI, and TCP/IP connectivity; and the industry’s first iSCSI HBA. Adaptec’s IP Storage technology is currently being designed into products from several OEMs, including IBM , ADIC, INRANGE and McData.

Company CFO, David Young said the company expects Eurologic will contribute between $60 million and $70 million in revenue during Adaptec’s next fiscal year.