Emulex Buys ServerEngines

Costa Mesa-based storage area networking equipment firm Emulex announced Monday afternoon that it has agreed to acquired ServerEngines Corporation, a Silicon Valley firm which develops iSCSI and Ethernet semiconductors. Emulex said it would pay $78M in cash and eight million shares of its common stock for ServerEngines, or a total of approximately $159M based on Emulex's closing price Friday. Emulex said that the buy will expands its total addressable market by around $350M. ServerEngines develops 10Gb/sec Ethernet ASICs, and has 170 employees based in Sunnyvale, Austin, and Hyderabad, India.