Emulex to pay $180M for Sierra Logic

Emulex Corp. will acquire fellow storage chip company Sierra Logic Inc., which raised about $32 million in venture financing, for up to about $180 million in cash, assumed debt and stock options.

In October 2003 Sierra Logic closed $15 million Series C funding from existing investors JPMorgan Partners, TPG Ventures, Interwest Partners, and QTV Capital. The company, which is profitable, hasn’t raised capital since then, Vice President of Marketing and co-founder Bryan Cowger said. He would not say what investors expect of returns. (Source: VentureWire.com)

“This was a home run,” said Interwest General Partner Tom Rosch and Sierra board member. The firm received only cash in the deal. About the complementary nature of the deal, he said: “It’s a great fit, the two companies have very similar cultures.”