Exabyte Acquired By Tandberg
Exabyte Acquired By Tandberg
August 31st, 2006: Storage consolidation continues as, after three months with the 'For Sale' sign up, Exabyte has been bought by Norwegian Tanderberg Data, for US$28-million.
Tandberg Data has acquired the US data storage company Exabyte Corporation for USD 28 million. The merged company with an expected revenue of US$215 million for 2006, will be the second largest player in data storage (OEMs not included). The deal comes less than a week after Quantum snapped up ADIC, reducing the number of tape vendors.
Tandberg Data signed late last night an agreement to acquire all assets, rights and certain liabilities in the US data storage company Exabyte Corporation. Tandberg Data pays US$28 million which is distributed among a number of Exabyte's creditors. US$22 million will be paid in cash at closing. The final closing of the agreement is expected to take place in the fourth quarter 2006.
Storage maker, Imation, which has holdings in Exabyte was quick to comment, " We will continue to act as exclusive distributor for VXA tape media globally and will continue to support their customers with their tape media needs," said Frank Russomanno, Executive Vice President and COO.
"Tandberg Data and Exabyte complement each other well in terms of both products and markets, and will jointly take a clear second place," comments Tandberg Data chief executive Gudmundur Einarsson.
"We will double our size and step up among the major technology companies listed on the Oslo Stock Exchange. A more advantageous size will give us bet ter opportunities to build something even st ronger, to the benefit of customers and shareholders."
"We are pleased to have reached an agreement for the combination of Exabyte and Tandberg Data," noted Tom Ward, CEO of Exabyte.
"The complimentary strengths of the two companies in the various geographic markets around the world will result in a truly global competitor in the storage industry. In addition, the combined product portfolios of the two companies will provide our customers with the full range of state-of-the- art, cost effective products and technologies to meet their needs. Finally, the operational synergies resulting from the combination will allow the new company to operate from a position of financial strength and stability in the future."
"That's important at a time when the computer industry is characterised by a powerful process of consolidation. We find that our dealers constantly want more complete answers to data security. With Exabyte's technology, we'll be able to offer better solutions for data storage and automation."