QLogic

QLogic company – one of leading manufacturers of HB adapters, switches, peripheral controllers and also the software that is a basis for networks of storage of many large international companies. QLogic proposes to users solutions on the basis of all known technologies, including SCSI, Internet SCSI (iSCSI), InfiniBand and the Fibre Channel. QLogic technologies find the application at the organization of information storages, transactions online, the organizations of high-speed reservation of data, during the work with video, broadcasting, automated design and production (CAD/CAM). The products QLogic are included in hundreds of OEM solutions of companies Cisco, Compaq, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Quantum, Sony, Sun and many others.

Performance Indicators

2015

According to the results of the financial year closed on April 3 the 2016th revenue of QLogic made $459 million against $520.2 million the previous year. Net profit was during this time reduced to $46.5 million from $50.6 million.

2016: Cavium buys QLogic for $1.36 billion

On June 15, 2016 the semiconductor company Cavium announced purchase of the producer of network equipment QLogic approximately for $1.36 billion with the purposes of expansion of the business in the field of data centers and storage systems.

Under the terms of the reached agreement, Cavium will pay cash $11 and 0.098 actions counting on one security of QLogic. Thus, the cost of the transaction will be $15.5 for the stock QLogic that is 14.4% more than the market value of securities to closing of the exchange on June 15, 2016.

The producer of network equipment QLogic is sold for $1.5 billion

After the declaration of sale of QLogic of a stock of the company during additional biddings after closing of the exchange rose in price for 11.9%, up to $15.15. The quotations of Cavium dropped by 7.6%, Reuters reports.

At QLogic cash in the amount of $355 million so Cavium as a result will pay about $1 billion for acquisition accumulated. The chipmaker hopes that this transaction will add 60-70 cents to his adjusted earnings on an action in 2017 financial year.

We expect considerable synergy of sales which will allow to increase a market share on all product lines of the company — the CEO of Cavium Syed Ali noted.

According to a joint statement of the companies, the transaction gives "great opportunity" for growth in the markets of data processing centers and disk storages and also adds more than $2 billion to market opportunities of Cavium.

JP Morgan acts as the exclusive financial advisor of Cavium according to the transaction connected with QLogic purchase. It is going to execute all formalities concerning the announced acquisition in the third quarter 2016.^[1]

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