Quantum completes ADIC acquisition

Storage giant finalises $770m acquisition of ADIC

Storage vendor Quantum has completed its acquisition of ADIC for $770m.

Quantum will fund the acquisition through a combination of cash in hand and about $500m of finance from a group of banks and lending institutions. The acquisition was initially announced in May (CRN, 3 May).

Rick Belluzzo, chief executive of Quantum, said in a statement: "We are bringing together two long standing leaders in backup, recovery and archive to create the largest independent company in this market.

"We will have more to say about this over the next 30 to 45 days, as we begin the integration of the two companies."

Quantum claimed that the move will bring it a number of advantages, including an increase in its opportunities for growth and a strengthening of its financial position.

The vendor also claimed that its annual interest expense resulting from the financing of the acquisition will about $50m. It also expects cost savings of between $75m and $80m, such as through a reduction in cost of goods sold and operating expenses.