Global storage company Quantum Corp. in San Jose, Calif. has acquired Advanced Digital Information Corp. and its outstanding shares for about $770 million.
The deal, announced in May, was finalized in August following approval of the transaction by ADIC shareholders. Quantum is funding the transaction through a combination of cash and about $500 million in financing.
With the acquisition of ADIC, Quantum offers a portfolio of platform-independent systems, software, devices and media. The deal is expected to expand Quantum's market access.
"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," said Rick Belluzzo, chairman and CEO of Quantum. "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."
Quantum said it would continue to sell and support all current Quantum and ADIC products; sell all products through the companies' respective partners and distribution channels; and maintain existing service contracts and product warranties.
The companies said their combined revenues over the last four quarters are more than $1.2 billion.
Quantum expects the transaction to be up to 15 cents accretive on an earnings per share basis, with the accretion beginning to appear in its financial results in the March quarter of next year. Over the last few months, the company has identified annualized cost synergies of about $75 million to $80 million, compared to the $45 million it had initially estimated when it announced the deal.
