Acquisition

Today PMC has announced that it will spend $4 million to acquire the storage division from Aglient. This news explains why we have to lend $2 million in the quarter result last week. Borrowing money to expand the company is a normal business pratice, but I still think kinda uneasy using up all the cash reserves to add another 300 head counts to the payroll. Still, it is nice to know the company is back on growing mode, only if this acquisition works out. I am not in the storage division, this news doesn’t impact our consumer product division much. However I could image my friends down in first floor can feel the shockwave. The storage division is running off from Allantown before the acquisition, the Burnaby team always feel like they are mistreated. Now with the extra headcounts, ESD people in Burnaby will recieve even less attention. I guess the morale of the Burnaby ESD team has just dropped to the lowest point. I wonder does Harvard Businnes Review has case studies on acquisitions. Gota remember to check out the lastest issue from the library tomorrow.

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