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San Mateo, Calif. - Mylex Corp. and BusLogic Inc. have agreed to join forces, merging two successful I/O companies in a deal company executives call unusually synergistic.
Mylex, which specializes in RAID disk controller and network management products, signed an agreement to purchase BusLogic-an SCSI card manufacturer competing with suppliers such as Adaptec Inc.-in exchange for approximately 2.7 million shares of Mylex common stock, worth about $50.4 million. Additional stock options, exercised after the agreement, could tack on up to $11 million more.
Pending approval by BusLogic shareholders later this month, BusLogic would continue to operate under its name and at its present location as a wholly owned subsidiary of Mylex.