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QLogic to Go to Silicon Valley Firm for $1B

Aliso Viejo-based networking products maker QLogic Corp. said it will be acquired for about $1 billion by Silicon Valley chipmaker Cavium Inc.

The deal was unanimously approved by both boards and is expected to close this quarter. It’s not subject to a QLogic shareholders vote.

The transaction will be funded with cash, $750 million in committed financing—including $650 million in a term loan and $100 million in short-term bridge debt—and new Cavium equity.

There was no word on where local executives will land after the sale. QLogic filled its top two posts with women last summer.

QLogic makes switches, adapter cards and other electronics used to speed up the flow of data. The sale of the company, which was founded in 1994, is the latest in a series in the local tech sector that underscores the ongoing consolidation in the global industry.

OC has lost several notable public companies in the past year or so, including several based in Irvine—chipmaker Broadcom Corp., laser maker Newport Corp., distributor Ingram Micro Inc., business software maker Kofax Ltd. and circuit board maker Multi-Fineline Electronix Inc.—as well as Costa Mesa-based networking gear maker and QLogic rival Emulex Corp.

—Chris Casacchia

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