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BANGALORE: Quantum Corp., said it will acquire Advanced Digital Information Corp., a major supplier of automated tape systems for about $770 million.
The merger will boost Quantum's portfolio of data storage, management and recovery solutions in open IT environments, said a statement from Quantum.
Quantum said the merger will strengthen Quantum’s financial position, expand its market access and increase its opportunities for growth.
The transaction is expected to be up to 15 cents accretive to Quantum on a cash earnings per share basis, with annual cost synergies of approximately $45 million in the first full year of combined operations.
The company expects that this accretion should start to be reflected in its financial results within the second full quarter following the close of the transaction.
“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, who will hold the same position in the combined company.
"Our enhanced financial strength will also enable us to increase our investments in new products and services both within and beyond our core business,” he added.
As a result of the merger, Quantum will expand its presence among branded channels and increase its OEM base of OEMs.
The combined revenues of the two companies will exceed $1.2 billion, according to Quantum.
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