California private equity firms QTV Capital, Texas Pacific Group, JP Morgan Partners and InterWest Partners will sell Roseville, California-based computer storage component manufacturer Sierra Logic to Costa Mesa-based rival Emulex. The exit, according to the Associated Press, is reportedly worth $180 million (€140.5 million) in cash, assumed debt and assumed employee stock options.
The four firms jointly put up $15 million in a third round of funding for Sierra in 2003. Sierra had previously received a $12 million round and a $5.25 million round in 2002. The company was founded in 2001.
The deal is expected to close by September 30. Emulex Chairman and CEO Paul Folino said in a statement that the acquisition “builds upon our prior acquisition of embedded switch supplier Vixel, as well as our joint development efforts with Intel.”
Emulex bought Bothell, Washington-based Vixel for $310 million (€242 million) in 2003. It also spun off its QLogic semiconductor division in 1994; that company is now a competitor with Emulex in making host bus adapter components.
Emulex also stated that it expects $8 million to $10 million in sales to be generated by Sierra by the end of the year, compared to the $15 million Sierra had in all of 2005. Emulex, meanwhile, had $376 million (€293.6 million) in revenue last year.