Adaptec, Inc. (Nasdaq: ADPT) said Monday it will buy Distributed Processing Technology (DPT) for $235 million in cash and stock.
Shares in Adaptec closed at 45 Friday, after a steady rise boosted by second quarter earnings that beat predictions.
DPT, a privately-held company based in Maitland, Florida, supplies high-performance storage products such as adapters, RAID, or redundant array of independent disk, controllers, storage subsystems, and management software.
The acquisition strengthens Adaptec's move into the RAID market, which is booming as the demand for storage capacity grows. DPT's technologies will also give Adaptec the opportunity to enter the external SAN (storate area networks) markets, and expand its business into UNIX storage.
"The combined forces of Adaptec and DPT should offer us revenue and market growth opportunities,'' said Bob Schultz, chief operating officer of Adaptec. He added that along with experience in the RAID market, DPT will also bring Adaptec a broader customer base
Adaptec will account for this acquisition under the purchase method of accounting.