Adaptec confirms US$30m Eurologic acquisition


31 Mar 2003

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US storage firm Adaptec has confirmed that it has reached an agreement to buy Dublin technology firm Eurologic.

The company is understood to have offered US$30m in cash for Eurologic, which is regarded as one of the stars of Ireland’s indigenous technology industry.

Nasdaq-quoted Adaptec said that it expects the acquisition to be completed next month. Prior to the acquisition, Eurologic is understood to have divested its storage area network (SAN) software business into a separate entity that will operate independently.

Adaptec will acquire Eurologic as a cash purchase for approximately US$30m and will incorporate the company into its Storage Solutions Group. As part of the deal Adaptec will assume all customer and supplier agreements belonging to Eurologic and will have access to its sales channels as well as opportunities in medical imaging and digital media.

According to Adaptec, the combined company will be able to offer original equipment manufacturers (OEMs) a single source for both direct-attached and network storage solutions.

“We expect Eurologic will contribute between US$60m and US$70m in revenue during Adeptec’s next fiscal year and provide a positive impact on our bottom line results by mid-year,” said Adaptec’s chief financial offer, David Young.

Fifteen-year-old Eurologic is Ireland’s largest private technology firm and had generated revenues of more than €100m in the year to the end of June 2002. This was down more than 50pc on the €258m revenues reported in 2001. In its 15 years, the company has shipped more than 148,000 storage systems to major OEMs such as Acer, Dell, Fujitsu Siemens, Intel, Siemens Medical and Avid, representing more than 21,000 terabytes of data storage.

By John Kennedy