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Adaptec Acquired Start-Up Aristos Logic

For $41 million

Adaptec, Inc. has signed a definitive agreement to acquire privately-held Aristos Logic Corporation, a provider of RAID solutions, in a cash transaction for a total consideration of approximately $41.0 million.  Completion of the acquisition remains subject to the satisfaction of certain closing conditions.

I am very pleased by this synergistic acquisition. Aristos Logic will bring us a strategic customer base that drives new OEM opportunities for Adaptec. Aristos Logic’s technologies and customers will also enable us to expand into high growth adjacent RAID segments, including performance desktops, blade servers, and enterprise-class external storage systems,” said S. ‘Sundi’ Sundaresh, president and chief executive officer of Adaptec. “As we build-out our I/O strategy – advancing I/O performance while integrating additional controller-based system functionality beyond RAID – the assets we will obtain through this acquisition will become even more valuable. Aristos Logic will also provide us with a strong ASIC roadmap. Their next generation 6 Gb/s serial RAID controllers will expand our channel offerings and enhance the value of our current lines of Unified Serial SATA and SAS products.”  

Founded in 2000, Aristos Logic is headquartered in Foothill Ranch, Calif. and has approximately 75 employees. Aristos Logic is a leader in multi-protocol RAID storage processor technology delivered in both software and silicon solutions. Its strong ASIC development team has developed a highly-scalable architecture that can be leveraged across  multiple product families ranging from entry-level internal RAID storage to high performance enterprise-class storage systems. Aristos Logic’s products are deployed by industry-leading OEMs in high-density applications that require a compact footprint with unbeatable data protection and reliability.

We are excited to be a part of Adaptec, a recognized leader in the data storage I/O market,” said Anil Gupta, president & CEO of Aristos Logic. “Our award-winning RAID storage processor technology has long been recognized by top tier storage OEMs. I believe Adaptec’s acquisition of Aristos Logic will strengthen its ability to serve the channel and OEM markets with an extremely compelling portfolio of storage products.

Today, Adaptec offers a comprehensive family of products built upon its Unified Serial Architecture that allows VARs, OEMs and IT organizations to create flexible storage solutions with cost-effective, high-capacity Serial ATA (SATA) disk drives, or high-performance Serial Attached SCSI (SAS) drives, or both, in a single storage system. In addition, Adaptec will continue to focus on the development of new technologies for integrating high-value, competitive advantages into its RAID controller and HBA products lines. It is also working to expand its global sales channels and strategic partnerships within the data storage ecosystem to increase its visibility in strategic markets. 

Comments

What got Adaptec - $3.6 million - selling recently its SnapServer division to Overland, will not be enough to pay $41 million to get start-up Aristos Logic.

Following this new deal, Adaptec will mainly get ASIC technology for next-generation 6Gbs serial RAID controllers for SAS and SATA HDDs. The company was historically a powerful company in I/O technology but lost its leadership these past years.

Aristos is a spinoff of WD in 2000 and several of its executives came from the HDD maker including its president and CEO Anil Gupta, former VP of VLSI engineering for WD.

The start-up has not revealed the name of its OEMs, but you can read in the presentation of the company that:” Primary targets for Aristos Logic’s RAID solutions are OEM suppliers of storage systems such as IBM, Hewlett Packard, EMC, Sun Microsystems, Dell, Apple, Hitachi and Network Appliance." Its main competitors are Intel and LSI (that provides chip production for Aristos).

The acquired firm, headquartered in Foothill Ranch, CA, has 75 employees including a software team in Bangalore, India.

Since its inception, Aristos got a total of $91 million in Series A through F rounds of financial funding, a figure much lower that the price paid by Adaptec. The company was backed by Panorama Capital, Quicksilver Ventures, TPG Ventures (now TPG Growth), and Woodside Fund. Strategic investors included EMC., Seagate, Emulex and Infineon.

Adaptec’s acquisitions
1998    Ridge Technologies
1998    Analog Devices
1999    PTS
1999    Cequadrat
1999    DPT
2000    Wild File
2001    Platys Communications
2002    Tricord Systems
2003    Eurologic Systems
2003    ICP Vortex
2004    Elipsan
2004    IBM (IP)
2004    Snap Appliance
2008    Aristos Logic

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