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Follow UsBANGALORE: Quantum Storage Solutions Group (SSG) has acquired Benchmark Storage Innovations, a privately held supplier of DLTtape drives, media and autoloaders. Under the terms of the agreement, Quantum will acquire all of Benchmark storage solutions, including its tape drive and tape media products which will be integrated into Quantum’s DLTtape Group.
Quantum, which already held close to a 20 percent interest in Benchmark, will pay the company’s other equity holders a total of approximately 13.1 million shares of Quantum stock and $11 million in cash upon closing of the transaction.
"In addition, Quantum will pay their equity holders approximately 1.9 million shares of Quantum stock if the DLTtape Group achieves certain performance milestones with the Benchmark product lines in the first year after the completion of the acquisition," says Simon Harvey, Managing Director Asia Pacific, Quantum Storage Solutions Group. Quantum expects the acquisition to close within the fourth calendar quarter of 2002.
The acquisition will enable Quantum to expand its DLTtape business by leveraging Benchmark’s complementary products to serve the data protection needs of both new and existing customers in a part of the market beyond Quantum’s current offerings.
As a part of Quantum’s strategy for India, the company plans to make inroads into the storage market by opening branch offices in New Delhi and Mumbai. The company has also invested (investment figures not provided) in local engineering capability to provide direct support along with trained and certified resellers and integration partners.
"As a result of the acquisition, Quantum will now be able to offer customers exceptional reliability, superior price/performance, and investment protection across an even broader line of tape drives," adds Simon. Also to accelerate Quantum’s channel business, the company has introduced ‘Quantum Academy’. This program offers resellers recognition programs, deal protection, training, sales tools and joint marketing programs.