Global storage major Quantum Corp has completed its acquisition of Advanced Digital Information Corp. (ADIC) for $770 million, creating a unified global storage company specializing in backup, recovery and archive solutions.
Of this amount, $500 million is sourced through financing from a group of banks and other lending institutions, while the rest is cash.
"We are bringing together two long-standing leaders in backup, recovery and archive to create the largest independent company in this market, with more than 50 years of experience in meeting customer needs. By combining our complementary strengths and intelligently integrating our broad range of assets, we are well positioned to provide even greater value to customers, expand our branded channel and OEM base and pursue new opportunities for growth," said Rick Belluzzo, Chairman & CEO, Quantum.
Quantum expects the ensuing synergy to result in elimination of redundant internal programs, employee positions and rationalized facilities, as well as streamlining of supply chain and procurement process due to higher manufacturing volumes. All of this will contribute towards a decrease in cost of both goods produced and operating systems.
The company will continue to sell and support all current Quantum and ADIC products through their respective partners and distribution channels, and maintain existing service contracts and product warranties.
The acquisition will also enable Quantum to offer a comprehensive portfolio of platform-independent systems, software, devices and media. Also, combined revenues exceeding $1.2 billion and a larger sales and service infrastructure (including nearly a thousand sales, marketing and service staff globally) will allow Quantum to engage with customers at a more strategic level.
