IBM has agreed to acquire storage hardware and software company Mylex Corp for approximately $US240 million.
In the acquisition, which is subject to regulatory and other approvals, IBM will pay $US12 for each share of Mylex stock, a 17 per cent premium over its closing price of $US10.25, IBM said. Mylex will become a wholly owned subsidiary of IBM, according to a press release issued yesterday.
The Fremont, California-based Mylex makes storage technology that is used to move, store, protect and manage data on desktops and in networks, including RAID (Redundant Array of Independent Drives) products. IBM plans to integrate Mylex technology into its own line of storage products but will continue to sell Mylex-branded products to distributors, resellers and OEM (original equipment manufacturer) customers, IBM said.
Mylex made news earlier in the year by announcing at the LinuxWorld conference in February that it will begin supporting the Linux operating system in all its products.
Mylex has more than 300 employees worldwide and had 1998 revenues of $US135.7 million.