Aliso Viejo, CA-based QLogic, a developer of Fibre Channel host bus adapters, stackable switches and blade server switches, is to sell its hard disk drive controller and tape drive controller business to Marvell Technology.
For parting with its controllers, the company will receive $225 million – $180 million in cash and $45 million in Marvell common stock.
The sale is expected to close within sixty days following the satisfaction of regulatory requirements and other customary closing conditions.
In addition, QLogic’s board of directors has authorised a new program to repurchase up to $350 million of its outstanding common stock over the next two years.
This stock repurchase program follows the completion of previous stock repurchase programs in which the company repurchased $200 million of its common stock since January 2003.