QLogic Acquires NetXen for $21 Million

QLogic Corp. has acquired NetXen, Inc. QLogic will pay approximately $21 million in cash for NetXen, Inc. (subject to certain closing adjustments).

Both companies serve the same customers and address similar markets. This acquisition provides QLogic with complementary networking products and intellectual property.

The acquisition further expands QLogic’s expertise in strategic areas of technology and enables the company to better address a wider range of emerging customer requirements for converged networks.

Comments

Here are some abstracts of the conference call transcript on the NetXen's acquisition:

H.K. Desain chairman and CEO:

"We currently expect revenue from NetXen acquisitions to be approximately $5 million in fiscal year 2010.

"Next Gen has a 10 gig Ethernet mix how Tier 1 saw OEM design wins and are shipping today. Next Gen also a 10 gig Ethernet long as a Tier 1 server volume design, we just began shipping. What we are trying to do with the combination is that we have a very widely deployed Fibre Channel/FCoE and iSCSI stack, which is deploying the industry for several years. And Next Gen long design wins will address – this combination will address the emerging converged long market for the enterprise servers.

"The second benefit of the combination is that also Next Gen has our 10-gig to capability their off-road in the 10-gig in the silicon and QLogic's widely deployed iSCSI stack for the target customers, so we can also address for 10-gig target markets.

"NetXen Ethernet stack is qualified at HP and IBM."