Storage company Quantum Corp. has a definitive agreement to acquire Advanced Digital Information Corp. (ADIC) for about $770 million. Quantum said it would fund the transaction through a combination of cash and financing.
Under the terms of the agreement, San Jose, Calif.-based Quantum will acquire all outstanding shares of ADIC. ADIC shareholders will receive $12.25 per share in cash, with the right to elect shares of Quantum stock in lieu of cash. Quantum expects the deal to take three to four months, during which time the two companies will continue to operate independently.
"Joining with Quantum will deliver tremendous value to both our shareholders and customers," said Peter van Oppen, chairman and CEO of ADIC. "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. The combination will also create a stronger go-to-market infrastructure, with larger and better leveraged sales and service capabilities through which we can offer greater support to customers."
The combined companies will have more than $1.2 billion in annual revenue. Quantum's projected growth from the deal in annual cost synergies is about $45 million in the first full year of combined operations, showing results within the second full quarter following the close. Quantum said bringing the two companies together would enable them to deliver greater innovation, value and support to end users, channel partners and OEMs.
"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," said Rick Belluzzo, chairman and CEO of Quantum.
Belluzzo is expected to hold the same position in the combined company.
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