SAN JOSE -- Sanmina-SCI today said it would sign a multi-year deal to build PC peripherals for Adaptec Inc. As part of the deal, Sanmina will also take over certain Singapore manufacturing assets and inventory from Adaptec. The deal is expected to close in January, although no financial terms were announced.
Under the agreement, Sanmina-SCI will build data protection, connectivity and storage products for Adaptec. Adaptec will take charges of up to $6 million to cover severance to its Singapore employees.

In a press release, Adaptec president and CEO S. "Sundi" Sundaresh said, "As we continue our analysis of Adaptec businesses and operations, we are identifying areas where associating with strategic partners will allow Adaptec to focus on our core value of delivering advanced RAID data protection technology to our OEM and channel customers worldwide.

"Manufacturing is one of those areas where a partner like Sanmina-SCI can bring additional expertise and efficiencies to the table."

The anticipated terms call for Sanmina-SCI to assume manufacturing operations of Adaptec products upon closing of the contemplated asset sale between the two companies, estimated to be in early January. Adaptec expects to take $5 million to $6 million to cover severance costs of its workforce in Singapore.