Adaptec 2002 Annual Report Download - page 62

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In March 2000, the Company acquired AANetcom, Inc., a privately held fabless semiconductor company located
in the United States. AANetcom developed technology used in gigabit or terabit switches and routers,
telecommunication access equipment, and optical networking switches in applications ranging from the
enterprise to the core of the Internet. Under the terms of the agreement, approximately 4,800,000 shares of
common stock were exchanged and options assumed to acquire AANetcom.
PMC recorded merger−related transaction costs of $7.4 million related to the acquisition of AANetcom. These
charges, which consisted primarily of investment banking and other professional fees, were included under
costs of merger in the Consolidated Statements of Operations for the year ended December 31, 2000.
Acquisition of Toucan Technology Ltd.
In January 2000, the Company acquired Toucan Technology Ltd., a privately held integrated circuit design
company located in Ireland. Toucan offered expertise in telecommunications semiconductor design. At December
31, 1999, the Company owned seven per cent of Toucan and purchased the remainder for approximately 300,000
shares of common stock and stock options.
PMC recorded merger−related transaction costs of $534,000 related to the acquisition of Toucan. These
charges, which consisted primarily of legal and accounting fees, were included under costs of merger in the
Consolidated Statements of Operations for the year ended December 31, 2000.
The acquisitions of SwitchOn, QED, Extreme, AANetcom and Toucan were accounted
for as poolings of interests and accordingly, all prior periods were restated.
The historical results of operations of the Company, Toucan, AANetcom, Extreme,
QED and SwitchOn for the periods prior to the mergers were as follows:
60