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QLogic Completes Acquisition of Ancor Communications

August 02, 2000|Dow Jones

QLogic Corp. said Tuesday that it completed its acquisition of Minnesota fiber-channel switch maker Ancor Communications in a stock swap. Aliso Viejo-based QLogic, which makes equipment for computer-storage networks, exchanged 0.5275 share for every share of Ancor Communications.

Shareholders of both companies approved the transaction earlier in the day.

When QLogic announced the deal in May, it was valued at $1.7 billion, based on the stock price of $99.94 a share. But the shares have come under heavy selling pressure since then.

On Tuesday, the stock slumped $6.81, or 9.2%, to $67.69 a share, in Nasdaq trading.

QLogic said it expects the transaction to be neutral or to add slightly to earnings for the calendar year ending December 2001.

The company will take a merger-related charge in the fiscal second quarter ending in September.

A First Call/Thomson Financial survey of seven analysts produced a mean earnings estimate of 26 cents a share for QLogic's second quarter. The company earned $13.4 million, or 35 cents a share, in the second quarter last year on revenue of $47.5 million.

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