Quantum completes Snap Appliance deal

Quantum has completed the deal to spin out its network attached storage division into a separate company called Snap Appliance.

The company had announced during October that it would create Snap Appliance to sell its Snap Server and Guardian products (see story).

The purchase price mentioned at the time was between US$11.3 million and US$13.2 million, but the end price was US$11 million, with an option to raise it to US$12.8 million. The final price was comprised of US$4.7 million cash, a US$2.4 million senior secured promissory note, and US$3.9 million of Snap stock.

Quantum also has an option to acquire up to an additional US$1.8 million of Snap stock, in the form of restricted convertible preferred securities. As part of the sale price, Quantum said it would provide up to US$650,000 of transition services to Snap.

Quantum's stock had jumped from US$2.11 to US$2.63 on the day of the original announcement, and closed overnight at an even US$3.

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