STOCKHOLM (05/08/2000) - Qlogic Corp. announced today an agreement to acquire Fibre Channel switch supplier Ancor Communications Corp. in a stock-swap deal valued at US$1.7 billion.
Under the terms of the agreement, which has been approved by the boards of directors of both companies, Qlogic will exchange 0.5275 shares of its common stock for each Ancor share, the Aliso Viejo, California-based supplier of Fibre Channel connectivity products said in a statement.
The $1.7 billion value of the transaction is based on the closing price of $99.94 for Qlogic shares at the end of trading on May 5 on the Nasdaq exchange, Qlogic said.
The proposed transaction, which is still subject to approval of the shareholders of both companies and appropriate regulatory clearances, is expected to close in the third quarter of this year, Qlogic said.
Ancor Chief Executive Officer Ken Hendrickson will be nominated to Qlogic's board of directors, according to the statement.
The acquisition is aimed at enabling Qlogic to offer its customers a more complete range of Fibre Channel SAN (storage area network) products, the company said.
Qlogic, in Aliso Viejo, California, can be reached at +1-949-389-6000, or via the Web at http://www.qlogic.com/. Ancor, in Eden Prairie, Minnesota, is at +1-612-932-4000, or at http://www.ancor.com/.