Marvell buys QLogic subsidiary
LOS ANGELES (Bloomberg) ? Marvell Technology Group Ltd., a maker of semiconductors for computer disk drives and network switches, agreed to buy a unit of QLogic Corp. for $225 million in cash and stock to broaden its product line.
Marvell, based in Bermuda, will acquire QLogic?s hard- disk-drive controller and tape-drive controller chip business, Marvell said in a statement.
Marvell is buying the unit to expand its sales of semiconductors for data-storage devices, chief executive officer Sehat Sutardja said in the statement.
QLogic wants to focus on its higher-growth storage area network infrastructure, CEO H.K. Desai said in a separate statement.
Marvell shares fell as much as 77 cents to $45.64 in extended trading at 4:30 p.m. New York time, after the companies announced the sale.
Earlier they rose $1.05 to $46.41 in Nasdaq Stock Market composite trading. They have climbed 31 percent this year.