Storage company Quantum has announced plans to purchase rival tape vendor ADIC for approximately $770 million.
Pending shareholder and regulatory approval, the deal is expected to close in about three to four months, according to Quantum.
The move will expand Quantum's sales force, channel partnerships and OEM arrangements, the company said in a statement. 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.
Rick Belluzzo, chairman and CEO of Quantum, will remain as CEO of the combined company.
Quantum also reported Tuesday that revenue for its fourth quarter, ended March 31, declined 14 percent from the same year-ago quarter. 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 the Europe, Middle East and Asia (EMEA) region. The company posted a net loss of $23 million, or 12 cents a share, on revenue of $206 million.
The $23 million loss included $18.6 million in charges from Quantum's February settlement in its three-year patent dispute with StorageTek. StorageTek is now a part of Sun Microsystems.