Quantum leaps for US$770m ADIC

Storage company Quantum has announced it plans to acquire rival tape vendor Advanced Digital Information Corporation (ADIC) for around US$770million.

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By  Dylan Bowman Published  May 14, 2006

Storage company Quantum has announced it plans to acquire rival tape vendor Advanced Digital Information Corporation (ADIC) for around US$770million. The deal will almost triple Quantum’s sales force, increase its channel presence and provide a broader base of original equipment manufacturers (OEMs), as well as open up important market segments, the company said. Quantum said the acquisition represented a major milestone in its strategy and expanded its presence around the world. ADIC’s line of products are currently distributed across the Middle East by StorIT. “We are very excited about bringing Quantum and ADIC together to create what will clearly be the largest independent provider of backup, recovery and archive solutions and a global leader in addressing custo- mers’ evolving data protection challenges,” said Rick Belluzzo, Quantum chairman and CEO. Enterprise Strategy Group senior analyst Steve Duplessie described the move as “brilliant” and hailed it as “great news” for customers. “The combined company will have an enormous set of offerings, the scale, footprint and financial foundation to really have an impact in the data protection market.” Duplessie added. Freeman Reports analyst Bob Abrahams said he expected the merger to threaten the businesses of second-tier tape autoloader and library suppliers such as Overland, Breece Hill and SpectraLogic. He stated that Quantum would also use ADIC’s channel to put pressure on players in the high-end tape library market such as IBM and Sun Microsystems. Quantum said it expected the deal to take three to four months to be completed, during which time the two companies would continue to operate independently. The company added that it expected a smooth and expeditious integration. “With an unparalleled portfolio of systems, software, devices and media, we will be able to integrate these assets and incorporate value-added features to best of breed solutions for customers of all sizes,” Belluzzo added. ADIC chairman and CEO Peter Van Oppen said joining with Quantum would deliver tremendous value to both our shareholders and customers. “The combined company will provide a single source of intelligent and innovative backup, recovery and archive solutions that enable end users to reduce costs and more easily protect and manage their business-critical data,” he explained. The deal comes just a couple of months after ADIC acquired data de-duplication software company Rocksoft in a deal worth over US$60 million. ADIC said at the time it expected acquisition to allow it to help customers manage, move, retain, and protect their data more effectively on different kinds of storage resources.

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