Aliso Viejo-based QLogic Corp. agreed to sell its struggling disk drive controller business for $225 million to Sunnyvale-based Marvell Technology Group Ltd., the company said Monday.
The sale comes after the division dragged down QLogic’s results in the past couple of quarters.
Some Wall Street investment banks, including Bear, Stearns & Co. and Piper Jaffray Cos., downgraded QLogic shares after QLogic’s most recent earnings release, citing weakness in the company’s controller business.
Japan’s Hitatchi Ltd., one of QLogic’s two biggest buyers of controllers, has seen volatility, according to analysts.
The deal allows QLogic to focus on electronic components for storage area networks, which are growing.
QLogic’s shares were up about 4% in afterhours trading Monday.
