Emulex to acquire Sierra Logic

Storage networking vendor adds to portfolio

Storage networking vendor Emulex has acquired Sierra Logic for approximately $180m, in a move the vendor claimed strengthens its embedded multi-protocol storage footprint.

Emulex confirmed that Sierra's board of directors and shareholders have already approved the acquisition, which is expected to close by the end of September.

Paul Folino, chief executive of Emulex, said in a statement: "This acquisition solidifies Emulex's embedded multi-protocol strategy. The expansion also provides incremental revenue opportunities. Further, it builds upon our prior acquisition of embedded switch supplier Vixel."

Sierra Logic’s portfolio includes embedded bridges and routers. Emulex claimed that by combining Sierra's products with its own existing embedded switches and I/O controllers, it will now be able to provide a complete end-to-end technology.

Bob Whitson, chief executive of Sierra Logic, said: "The solid customer base and product portfolio that Sierra Logic brings to Emulex enables delivery of end-to-end embedded storage that address our OEM customers' tiered storage strategies."

Emulex claimed it was unable to predict the exact impact that the acquisition of Sierra would have on its Generally Accepted Accounting Principals (GAAP) earnings for its fiscal year 2007.

However, the vendor also claimed that the non-GAAP impact would be immaterial upon its September quarter and that its December quarter would see an additional contribution of about $8m to $10m in turnover from the acquisition.