Adaptec, Inc. (NASDAQ: ADPT) rises after acquisition announcement

Adaptec, Inc. (NASDAQ: ADPT, ADPT message board) shares rose 3% over a day after the company announced they have agreed to acquire Aristos Logic . The definitive agreement was signed on August 28, 2008. Adaptec has agreed to pay approximately $41 million for Aristos, a provider of RAID solutions.

The Chief Executive Officer of Aristos, Anil Gupta, commented on the agreement: "We are excited to be a part of Adaptec, a recognized leader in the data storage I/O market. Our award-winning RAID storage processor technology has long been recognized by top tier storage OEMs. I believe Adaptec's acquisition of Aristos Logic will strengthen its ability to serve the channel and OEM markets with an extremely compelling portfolio of storage products."

With Aristos acquired, Adaptec will be able to expand their customer base as well as strengthen their market position. According to S. Sundaresh, the president and CEO of Adaptec, the company will be able to expand into high growth RAID segments such as performance desktops, blade servers, and enterprise-class external storage systems.

At the moment the acquisition looks quite promising and should give Adaptec a rather significant growth boost. The company has already done a good job over the last year - cutting their expenses allowed them to turn to profitability and their gains continue to increase.

Adaptec is in a strong financial position with nearly $236 million in cash alone as reported in their latest SEC filing. The company looks ready for more than one acquisition and has enough money for expansion of their business. While the company's stock appears to be adequately valued at the moment, the price still should increase along with Adaptec's growth in the future. In trading this morning, shares changed hands between $3.85 and $3.99.

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