Storage giant claims acquisition will strengthen its financial position in the market

Storage vendor Quantum has acquired rival vendor ADIC for approximately $770m.

In a statement, Quantum claimed that the move would enable it to further support its "end-users, channel partners and OEMs". It added that it would also strengthen its financial position in the market and give it greater opportunities for market growth.

Rick Belluzzo, chief executive of Quantum, will retain the same position once the two vendors are combined. "We are very excited about bringing Quantum and ADIC together to create what will clearly be the largest independent provider of backup, recovery and archive solutions.

"Our enhanced financial strength will also enable us to increase our investments in new products and services both within and beyond our core business," said Belluzzo.

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

Peter van Oppen, chief executive of ADIC, said: "The combined company will provide a single source of intelligent and innovative backup, recovery and archive solutions that enable end users to reduce costs and more easily protect and manage their business-critical data.

"The combination will also create a stronger go-to-market infrastructure, with larger and better leveraged sales and service capabilities through which we can offer greater support to customers," he said.

Jason Beeson, storage solutions manager at Hammer, which distribute both Quantum and ADIC said the combined vendor now had nearly the entire storage market sewn-up.

"It's hard to know exactly what the effect will be at the start of the announcement. However, this is a positive thing and if the combined vendor can achieve a channel friendly focus then this could be extremely positive for the channel," he said.