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PMC-Sierra Completes Acquisition of Adaptec Channel Storage Business

25th June 2010

PMC-Sierra

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PMC-Sierra, Inc. (Nasdaq:PMCS), the premier Internet infrastructure semiconductor solution provider, today announced it has completed the acquisition of the channel storage business from Adaptec, Inc. (Nasdaq:ADPT). The channel storage business includes Adaptec's RAID storage product line, the Adaptec(R) brand, a well-established global value added reseller customer base, board logistics capabilities, and leading SSD cache performance solutions. In accordance with the terms of the transaction announced May 10, 2010, PMC-Sierra paid approximately $34 million in cash for the acquisition and assumed certain liabilities related to the business.

PMC-Sierra expects the acquisition will strengthen the Company's existing enterprise storage business by accelerating access to channel customers. Adaptec is the second largest supplier of x86 RAID products through the channel.

With the closing of this acquisition, PMC-Sierra now has an established channel storage business and a highly skilled team to address the needs of this segment of the enterprise RAID storage market, said Greg Lang, PMC-Sierra's president and CEO.