Costa Mesa-based Emulex Corp said Wednesday it plans to buy a San Jose networking company in a move that gives it a base in India to grow.
Emulex, which makes gear that helps connect and speed up storage area networks, said it plans to acquire Aarohi Communications Inc., a supplier of networking components and software for data centers.
Emulex is buying Aarohi for $39 million plus assumed debt, stock options and other compensation charges.
Aarohi has about 70 employees, primarily engineers based in San Jose and Bangalore, India.
Emulex expects to grow the acquired India site to become “one of its major research and development facilities” during the next two to three years, the company said in a release.
Acquisitions are a key growth strategy for Emulex, said Chief Executive Paul Folino earlier this year.
Earlier this month, the company cut its adjusted earnings estimate for the quarter ended April 2 to $16.8 million to $17.6 million, down from $22.6 million to $23.5 million. Analysts were looking for $22.6 million.
Emulex reduced its revenue estimate to $88 million to $89 million, down from
$106 million to $108 million. Analysts were looking for $107.3 million.
The company blamed the lower outlook on delays by its customers in rolling out products with new Emulex technology.
