VCs Take Loss on Aristos Logic

Adaptec Inc. (Nasdaq: ADPT) has agreed to acquire Aristos Logic Corp., a Foothill Ranch, Calif.-based provider of RAID storage processing solutions, for approximately $41 million in cash. Aristos Logic has raised around $100 million in total VC funding since its 2000 inception, from firms like JPMorgan Partners, TPG Ventures, Woodside Fund, QTV Capital, Seagate Technology, Infineon Technologies, Emulex Corp., EMC Corp.

 

PRESS RELEASE

 

Adaptec Inc. (Nasdaq: ADPT) today announced it has signed a definitive agreement to acquire privately-held Aristos Logic Corporation (http://www.aristoslogic.com), a provider of industry-leading RAID solutions, in a cash transaction for a total consideration of approximately $41.0 million. Completion of the acquisition remains subject to the satisfaction of certain closing conditions.

 

“I am very pleased by this synergistic acquisition. Aristos Logic will bring us a strategic customer base that drives new OEM opportunities for Adaptec. Aristos Logic's technologies and customers will also enable us to expand into high growth adjacent RAID segments, including performance desktops, blade servers, and enterprise-class external storage systems,” said S. “Sundi” Sundaresh, president and chief executive officer of Adaptec. “As we build-out our I/O strategy — advancing I/O performance while integrating additional controller-based system functionality beyond RAID — the assets we will obtain through this acquisition will become even more valuable. Aristos Logic will also provide us with a strong ASIC roadmap. Their next generation 6 Gb/s serial RAID controllers will expand our channel offerings and enhance the value of our current lines of Unified Serial(TM) SATA and SAS products.

 

“Founded in 2000, Aristos Logic is headquartered in Foothill Ranch, Calif. and has approximately 75 employees. Aristos Logic is a leader in multi-protocol RAID storage processor technology delivered in both software and silicon solutions. Its strong ASIC development team has developed a highly-scalable architecture that can be leveraged across multiple product families ranging from entry-level internal RAID storage to high performance enterprise-class storage systems. Aristos Logic's products are deployed by industry-leading OEMs in high-density applications that require a compact footprint with unbeatable data protection and reliability.

 

“We are excited to be a part of Adaptec, a recognized leader in the data storage I/O market,” said Anil Gupta, president & CEO of Aristos Logic. “Our award-winning RAID storage processor technology has long been recognized by top tier storage OEMs. I believe Adaptec's acquisition of Aristos Logic will strengthen its ability to serve the channel and OEM markets with an extremely compelling portfolio of storage products.”

 

Today, Adaptec offers a comprehensive family of products built upon its Unified Serial Architecture that allows VARs, OEMs and IT organizations to create flexible storage solutions with cost-effective, high-capacity Serial ATA (SATA) disk drives, or high-performance Serial Attached SCSI (SAS) drives, or both, in a single storage system. In addition, Adaptec will continue to focus on the development of new technologies for integrating high-value, competitive advantages into its RAID controller and HBA products lines. It is also working to expand its global sales channels and strategic partnerships within the data storage ecosystem to increase its visibility in strategic markets.

 

Additional information will be provided in a Form 8-K that will be filed with the Securities and Exchange Commission in connection with the transaction, as well as during Adaptec's Q2 quarter 2009 conference call.

 

About Adaptec

 

Adaptec Inc. provides trusted storage solutions that reliably move, manage, and protect critical data and digital content. Adaptec's software and hardware-based solutions are delivered through leading channel partners and Original Equipment Manufacturers (OEMs) to provide storage connectivity, data protection, and networked storage to enterprises, government organizations, medium and small businesses worldwide. More information is available at http://www.adaptec.com.

 

About Aristos Logic

 

Aristos Logic is the leading supplier of RAID building blocks to the data storage industry. The company pioneered multi-protocol RAID Storage Processor (RSP) technology and has delivered software and silicon solutions based on the RSP technology. The scalability of Aristos Logic's products enable customers to leverage their designs across multiple product families ranging from cost effective internal RAID storage to high performance enterprise class storage systems targeted for the data center. Aristos Logic's products have been deployed by industry-leading storage OEMs worldwide in high-density applications that require a compact footprint along with data protection and reliability. Aristos is backed by a number of distinguished strategic investors as well as leading venture firms such as J. P. Morgan Partners (now Panorama Capital), Texas Pacific Group, Woodside Fund and Quicksilver Ventures. For further information, please visit our Web site at http://www.aristoslogic.com.