Emulex

(EMLX)

plans to acquire privately held

Giganet

for about $645 million in stock and options.

After completing the transaction, Giganet, which is based in Concord, Mass., will become the IP networking group of Emulex. Neil Ferris, the president and chief executive of Giganet, will join Emulex's board of directors.

The company expects to close the deal in the third quarter of fiscal 2001.

Emulex, based in Costa Mesa, Calif., expects to record a noncash charge of about $10 million. Excluding charges, Emulex expects the acquisition to be nondilutive to pro forma earnings per share for the fiscal year ending July 1, 2001.

The company expects pro forma fiscal 2001 earnings of $1.48 a share on revenue of about $285 million. Analysts expect the company to earn $1.43 a share for 2001.

After being down 0.3% to $155.31 in the regular

Nasdaq

trading session, Emulex was recently down to $151.13 in after-hours

Island

trading.