History 2001: For $265 Million, ADIC Buys Pathlight

ADIC has acquired privately-held Pathlight Technology for $265 million in stock.

5% of Pathlight’s shares belonged to Rand Capital, which did particularly well in the deal, since its $1.2 million initial investment will be converted into $13 million shares of ADIC.

The library manufacturer now owns a profitable $20 million company headquartered in Ithaca, NY, with highly advanced storage technology.

Its star products are its SAN gateways and routers, as well as SAN Director, a storage virtualization software.

Pathlight began in 1994 with SBus-SSA adapters. Note, however, that the firm is currently involved in a patent infringement lawsuit with Crossroads Systems.

Co-founder Said Rahmani will become VP R&D at ADIC.

Both companies are expected to increase revenues in the range of 40% or more for FY01.

This will be the third acquisition in three years for ADIC, after Emass in 1998 and MountainGate Imaging Systems in 1999.

This article is an abstract of news published on issue 158 on March 2001 from the former paper version of Computer Data Storage Newsletter.