Adaptec 2001 Annual Report Download - page 63

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63
NOTE 2. Business Combinations
Pooli ngs of I nterests:
Fiscal 2000
Acquisition of SwitchOn Netw orks Inc.
In September 2000, the Company acquired SwitchOn Netw orks Inc., a privately held packet
content processor company, with offices in the United States and India. Under the terms of the
agreement, approximately 2,112,000 shares of common stock were exchanged and options
assumed to acquire SwitchOn.
PM C-Sierra recorded merger related transaction costs of $1.1 million related to the acquisition
of SwitchOn. These charges, w hich consisted primarily of legal and accounting fees, were
included under costs of merger in the Consolidated Statement of Operations for the year ended
December 31, 2000.
Acquisition of Quantum Effect Devices, Inc.
In A ugust 2000, the Company acquired Quantum Effect Devices, Inc., a public company located
in the United States. QED developed embedded microprocessors that perform information
processing in netw orking equipment. Under the terms of the agreement, approximately
12,300,000 shares of common stock were exchanged and options assumed to acquire QED.
PM C-Sierra recorded merger-related transaction costs of $23.2 million related to the acquisition
of QED. These charges, which consisted primarily of investment banking and other
professional fees, w ere included under costs of merger in the Consolidated Statements of
Operations for the year ended December 31, 2000.
Acquisition of Extreme Packet Devices, Inc.
In A pril 2000, the Company acquired Extreme Packet Devices, Inc., a privately held fabless
semiconductor company located in Canada. Extreme specialized in developing semiconductors
for high speed IP and ATM traffic management at 10 Gigabits per second rates. Under the
terms of the agreement, approximately 2,000,000 exchangeable shares (see Note 10) were
exchanged and options assumed to acquire Extreme.
PM C-Sierra recorded merger-related transaction costs of $5.8 million related to the acquisition
of Extreme. These charges, which consisted primarily of investment banking and other
professional fees, w ere included under costs of merger in the Consolidated Statements of
Operations for the year ended December 31, 2000.
Acquisition of AANetcom, Inc.
In M arch 2000, the Company acquired AANetcom, Inc., a privately held fabless semiconductor
company located in the United States. AA Netcom developed technology used in gigabit or
terabit sw itches and routers, telecommunication access equipment, and optical networking