Quantum To Acquire ADIC
Quantum To Acquire ADIC
May 4th, 2006: In a US$770 million milestone, Quantum has announced that it has signed a definitive agreement to acquire Advanced Digital Information Corp. (ADIC).
Quantum says that the merger will provide customers with the most comprehensive and integrated range of solutions for securely storing, managing, protecting and recovering their data in open systems IT environments.
With combined revenues exceeding $1.2 billion over the last four quarters, the deal will put the combined company in a very strong position as an independent storage company.
Quantum says that the deal is a major milestone in its strategy and will nearly triple its sales force, expand its market access and give it a stronger growth platform.
"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 customers' evolving data protection challenges," says Rick Belluzzo, chairman and CEO of Quantum. Belluzzo will hold his position as chairman and CEO in the combined company.
Under the terms of the agreement, Quantum will acquire all outstanding shares of ADIC. ADIC shareholders will receive $12.25 per share in cash or 3.461 shares of Quantum stock for each ADIC share they own.
"This is a brilliant strategic move by Quantum and great news for customers," says Steve Duplessie, founder and senior analyst of Enterprise Strategy Group. "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. This acquisition propels Quantum into a clear top three position among the largest data protection suppliers, and makes them big enough to control their own fate. I love this deal."
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