Channel left uncertain by Quantum acquisition

Partners on both sides of the $770m deal wonder how it will affect their businesses

Written by James Sherwood

The storage channel is reserving judgement on Quantum Storage’s acquisition of rival ADIC last week, in a deal worth about $770m.

Quantum has claimed that the combined company will expand its market access and decrease its product development time. But channel partners on both sides of the acquisition will experience a 90-day uncertainty period until the deal closes.

Franco Mezzullo, vice-president of Quantum EMEA, told CRN: “The combined company will still be very channel friendly. Our main route to market is still through the channel.

“Quantum and ADIC’s strategy will remain unchanged for the next 90 days, but we are still very complementary to each other, and partners will benefit from an expanded product portfolio.”

The vendor claimed its acquisition of ADIC is part of a strategy to expand its market access, such as increasing its presence in the branded channel, strengthening its growth platform and enhancing its financial position.

The announcement comes seven months after Overland Storage rejected a take-over bid by ADIC, following its receipt of an “unsolicited letter” from ADIC proposing an acquisition of all of its outstanding stock at $7.90 per share.

Peter van Oppen, chief executive of ADIC, said in a statement: “The combination will create a stronger, go-to-market infrastructure.”

Jason Beeson, storage solutions manager at Hammer, which distributes both Quantum and ADIC, said: “It’s hard to know exactly what the effect [of the acquisition] will be. However, this is a positive thing, and if the combined vendor can achieve a channel-friendly focus, this could be extremely positive for the channel.”

However, Andy Cordial, director of VAR Origin Storage Solutions, said: “It’s a very uncertain period for the channel partners on both sides of the acquisition.”

james_sherwood@vnu.co.uk

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