Concerns over U.S. approval of Adaptec's planned acquisition of Symbios have caused the $775 million stock purchase to be terminated.
Adaptec and Hyundai Electronics America Thursday announced termination of the stock purchase agreement because the two companies have concluded the Federal Trade Commission was unlikely to approve the transaction in its is current form.
In February, Adaptec and the U.S. subsidiary of South Korea's Hyundai Electronics Industries announced Fort Collins, Colo.-based Symbios would be sold to Adaptec. Adaptec said it hoped to combine Symbios' analog semiconductor technology with its own digital expertise to serve high-speed networking and input/output applications. Under the agreement Milpitas, Calif.-based Adaptec would have acquired all of the outstanding stock in Symbios, which had been acquired by Hyundai from AT&T Microelectronics in 1995 for about $300 million.
"We are very disappointed that we are unable to complete this transaction," said Grant Saviers, chairman and CEO of Adaptec. "While we are not in agreement with the FTC, we have concluded that it is in the best interests of both companies to terminate the transaction at this time."
said it expects to take a charge of approximately $20 million in its current fiscal quarter, ending June 30, in connection with the terminated transaction.
Meanwhile, the president and CEO of Hyundai Electronics America, C.S. Park, said his company was also disappointed the transaction could not be completed as planned.