The Channel logo


By | Team Register 3rd May 2006 16:59

ADIC buy helps Quantum leap into enterprise

$770m storage buy

Quantum has set its heart on cracking the enterprise market and is coughing up $770m to buy rival storage vendor Advanced Digital Information Corp.

Quantum is banking on the deal to massively expands its sales force and channel operation, particularly in the enterprise market where ADIC typically plays. Quantum said it would be building on ADIC’s StorNext datamanagement software. The buyer also reckons combining the two firm’s technology will allow it to rack up its investment in high growth areas.

If Quantum’s numbers are right, the deal should deliver savings of $45m in its first year of combined operations, and add up to 15 cents per share to earnings. That should put a smile on Quantum chairman and CEO Rick Belluzzo’s face – and Belluzzo will be doing the same job at the combined company.

Belluzzo’s company could do with something to smile about. The deal was announced the same day Quantum reported fourth quarter sales were down 14 per cent to $206m with losses of $23m.®

alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


Suit-and-tie-wearing man tries to meditate, take deep breaths in faux yoga pose. Photo by Shutterstock
Emotional intelligence, not tech skills, is the way to woo suits
League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe