Quantum has announced plans to purchase fellow tape vendor Advanced Digital Information for approximately US$770 million (NZ$1.25 billion).
The move will expand Quantum’s salesforce, channel partnerships and OEM (original equipment manufacturer) arrangements, the company said in a statement earlier this month.
Quantum expects cost savings to come through elimination of overlap between the two complementary companies, in such areas as manufacturing, operations, research and development, and marketing.
Pending shareholder and regulatory approval, the deal is expected to close in about three to four months, according to Quantum.
Quantum chief executive and chairman Rick Belluzzo will retain the two roles at the the combined company.
Quantum also recently reported that revenue for its fourth quarter, ended March 31, declined 14% from the same quarter last year. The company attributed the decline to an ongoing transition in its products, changes in manufacturing locations and weak sales in its OEM channel and in Europe, Middle East and Asia. The company posted a net loss of US$23 million, or 12 cents a share, on revenue of US$206 million.
The loss included US$18.6 million in charges from Quantum’s February settlement in its three-year patent dispute with StorageTek, which is now a part of Sun Microsystems.