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November 1, 1999

Adaptec Rounds Out Raid Portfolio With DPT Buy

By CBR Staff Writer

Adaptec Inc rounded out its RAID storage portfolio yesterday with the acquisition of privately-held Distributed Processing Technology (DPT) in a deal worth $235m. DPT, of Maitland, Florida, makes storage devices including adapters, RAID controllers, storage subsystems, and management software. Adaptec said it bought DPT for its RAID technology, which will enable the company to enter the external RAID and SAN markets for the first time. Currently, Adaptec makes embedded RAID, which is fused on the motherboard, and internal RAID adapter cards, but the company has no external hardware offerings.

A spokesperson for the company said Adaptec will use DPT’s technology to build a range of external devices which it will resell to its existing systems customers for use in storage area network environments. In addition, Adaptec will develop SAN management software which it will bundle with the hardware. The company is currently in talks with its partners, who include Sun, Dell and Hewlett-Packard, about reselling agreements, although the spokesperson wouldn’t say exactly who would be offering the new devices, or when they would be available. Entering the SAN market also enables Adaptec (which has traditionally been an NT-only shop) enter the Unix storage market, the spokesperson said. Adaptec said it will account for the acquisition under the purchase method of accounting and all DPT’s 225 employees will become Adaptec employees.

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