Vote Paves Way for QLogic Spinoff From Emulex

Emulex Corp. and its subsidiary QLogic Corp. will be split into two separate, publicly traded technology companies as a result of a shareholder vote on Thursday.

Shareholders voted at a special meeting to approve a plan for a tax-free distribution of common stock for QLogic in a transaction known as a one-for-two reverse stock split.

In the deal, an Emulex shareholder who owns 100 shares would end up with 50 shares of Emulex stock and 50 shares of QLogic stock. The approval opens the way for QLogic’s spinoff.

The deal finally allows the companies, which have operated separately in anticipation of the spinoff, to go their own ways. Both firms already report separate financial results and occupy different buildings at the Emulex Corp.’s headquarters in Costa Mesa.

QLogic has about 120 employees and makes computer chips based on the Small Computer System Interface, or SCSI (pronounced scuzzy ), standard for connecting devices, such as printers to personal computers. Emulex, meanwhile, will concentrate on the business of its other subsidiary, the Network Systems Division, which has 300 employees and focuses on making hardware and software that connect computer networks.

The transaction is now awaiting approval from the Securities and Exchange Commission, the companies said. Both companies would trade on the Nasdaq exchange.