December 15, 2000, 11:15 AM — COSTA MESA, CALIF. - Emulex last week announced plans to acquire Giganet in a $645 million stock deal that will enable Emulex to offer a mix of Fibre Channel- and Ethernet-based products for storage networks.
"The acquisition of Giganet extends Emulex's leadership position in storage networking host bus adapters from Fibre Channel into the IP arena," Emulex CEO Paul Folino says.
Emulex, which sells Fibre Channel host bus adapters used to build storage-area networks, will create an IP network group built around Giganet's offerings.
Giganet's Virtual Interface products are used to build low-cost server farms, and include host adapters and cluster switches that enable server-to-server network clusters.
The Concord, Mass., company, which has 100 employees and generates about $500,000 per year in revenue, sells products that run on Windows NT and Linux systems.
Emulex has been on a roll. The company's revenue for fiscal year 2000, which ended July 2, doubled from the previous year to roughly $140 million. The company made nearly $33 million in profit.