Cavium agreed to acquire all of the outstanding QLogic common stock for approximately $1.36 billion in equity value ($15.50 per share, comprised of $11.00 per share in cash and 0.098 of a share of Cavium common stock for each share of QLogic common stock).
QLogic, which is based in Aliso Viejo, California, supplies Fibre Channel Adapters, converged network adapter for the Fibre Channel over Ethernet (FCoE) market, Ethernet adapters, iSCSI adapters, and ASICs. The company has design wins for next generation Ethernet (10/25/50/100Gb) and Fibre Channel (16/32Gb) platforms.
QLogic, which is listed under the NASDAQ symbol QLGC, was created in 1992 after being spun off by Emulex. QLogic has 782 employees.
Cavium said QLogic's portfolio of advanced connectivity and storage solutions is highly complementary to its portfolio of networking, compute, and security solutions. The combination enables Cavium to offer a complete end-to-end offering to customers in Enterprise, Cloud, Data Center, Storage, Telco and Networking markets.
“Today’s acquisition of QLogic is highly complementary and strategic to Cavium and it creates a diversified pure-play infrastructure semiconductor leader,” stated Syed Ali, President and Chief Executive Officer of Cavium. “QLogic’s industry leading products extend our market position in data center, cloud and storage markets, and further diversifies our revenue and customer base. In addition to the compelling strategic benefits, the manufacturing, sales and operating synergies will create significant value for our shareholders.”
“QLogic with Cavium is a winning combination for customers and employees and is financially compelling for QLogic shareholders,” said Christine King, Executive Chairman of QLogic. “The scale of operations of a nearly $1 billion revenue business will allow the combined company to deliver better solutions for customers and create more career opportunities for employees. Shareholders will benefit from both the immediate premium, as well as the opportunity to participate in the long-term value creation from the combined company’s strong growth prospects.”