by CIO Staff

Quantum to Purchase Advanced Digital Information

News
May 03, 20061 min
Virtualization

Quantum, a firm that specializes in data-storage technologies, has announced that it will purchase Advanced Digital Information, a producer of tape-storage systems and technologies, for $770 million, The Wall Street Journal reports.

Advanced Digital’s shareholders will get $12.25 in cash, or the option to take 3.461 shares of Qualcomm stock, in exchange for each of their shares, according to the Journal. A maximum of 10 percent of the total merger purchase price will be paid in stock, the Journal reports.

Because the two companies operate similar businesses, Quantum expects savings to come in the form of manufacturing process improvements, a decrease in the cost of duplicative operating functions, and the shared costs of research and development, the Journal reports.

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