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DAILY NEWS AND INFORMATION
FOR THE GLOBAL GRID COMMUNITY / SEPTEMBER 8, 2003: VOL. 2 NO. 36
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Breaking News -
Storage:
Applied Micro Circuits Corporation
To Acquire JNI Corporation
Applied Micro Circuits Corporation announced that it has signed a
definitive
agreement to acquire JNI Corporation. JNI provides Fibre Channel hardware and
software products that form critical elements of storage area networks.
Under the terms of the agreement, AMCC will pay $7.00 per share in cash for
each outstanding share of JNI common stock, a total of approximately $190
million, and will assume all outstanding JNI employee stock options. As of
June 30, JNI's assets included approximately $90 million of cash and
investments. The acquisition has been approved by the boards of directors of
each company and is subject to the approval of stockholders of JNI
Corporation, as well as other customary closing conditions and regulatory
approvals. The acquisition is expected to close in the fourth quarter of this
calendar year.
"Driven by new broadband applications and the resulting need for a secure,
reliable, and scalable storage network, Fibre Channel technology has
experienced mass market acceptance. JNI is positioned well in this growing
market with an extensive, easy-to-use product line for both Solaris and
Windows," said Dave Rickey, chairman, president and CEO of AMCC. "This
acquisition significantly extends AMCC's networking silicon technology
expertise beyond the Wide Area Network into the high-growth SAN market."
"The merger enables JNI to achieve cost and technology synergies with AMCC
that will provide us with the scale necessary to achieve market leadership,"
said Russell Stern, president and CEO of JNI Corporation. "AMCC brings state
of the art silicon infrastructure including physical layer and multi processor
design expertise which is highly leveraged in host bus adapters. Combining
with AMCC will drive greater value for our customers and enable us to leverage
valuable intellectual property."
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