Costa Mesa-based Emulex Corp. said Tuesday it’s buying Roseville-based Sierra Logic Inc. for about $180 million in cash, assumed debt and employee stock programs.
Like Emulex, Sierra makes chips and circuit boards used to link computers on data storage networks.
Sierra was started in 2001 and has raised about $30 million in venture funding.
The deal is set to close at the end of September.
Emulex said it expects to incur as yet unknown charges from the acquisition in its fiscal year that started in July.
The company said it expects Sierra to add $8 million to $10 million in sales during the quarter ending in December.
Sierra had sales of $15 million last year. The company has about 70 workers in Northern California.
Emulex’s last acquisition was in 2003, when it paid $310 million for Bothell, Wash.-based Vixel Corp.
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SimpleTech Building Malaysia Plant
Santa Ana-based memory products maker SimpleTech Inc. plans to spend $28 million to build a plant in Malaysia in a bid to lower costs, the company said last week.
SimpleTech, which makes memory boards and cards for computers and consumer electronics, said the plant will be 200,000 square feet and should be operating by early 2008.
Malaysia offered tax incentives and close proximity to memory chip suppliers and customers in Asia, which should cut shipping times, the company said.
SimpleTech, which operates in an industry known for its tight profits, also gets lower cost labor and engineering, the company said.
“The Malaysia operations will be closely linked to the sales, engineering and logistics offices the company has already established in Taiwan, Hong Kong and Japan,” the company said.
,Brian Womack
