QLogic's tape business is a little Marvell

Aug 31, 2005: QLogic Corporation, which specialises in Fibre Channel host bus adapters, stackable switches and blade server switches, has agreed to sell its hard disk drive controller and tape drive controller business to broadband communications technology provider Marvell Technology Group for US$225m, comprised of US$180 million in cash and US$45 million in Marvell common stock.

In addition, QLogic's board of directors has authorised a new program to repurchase up to US$350 million of the company's outstanding common stock over the next two years.

"The sale of our hard disk drive controller and tape drive controller business will provide long-term career opportunities for our engineers and a long-term roadmap for our customers," said H. K. Desai, QLogic's chairman, chief executive officer and president.  "Most importantly, this sale will benefit our shareholders as it will enable us to focus on the higher growth SAN infrastructure component market."

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