Quantum inserts the Certance
$60m of fresh tape
Quantum is looking to build out its tape storage business in the most obvious of ways - by picking up a fellow tape storage maker.
Quantum intends to acquire privately held Certance based in Costa Mesa, California in an all cash transaction valued at $60m. Simply put, Certance will add tape drives, software and related intellectual property to Quantum's existing portfolio. The deal is expected to close in the fourth quarter should it meet the customary regulatory conditions.
"Today's announcement reinforces Quantum's commitment to providing customers with tape technologies best suited for current and future environments," said Rick Belluzzo, chairman and CEO of Quantum. "As a newly combined $1 billion company building on Quantum's and Certance's complementary strengths, we will offer the industry's broadest portfolio of tape and disk systems for backup, recovery and archive."
Certance employs close to 1,000 people and has products aimed at customers ranging from small businesses on up to the enterprise. Earlier this month, the company proudly proclaimed that it was the first vendor to ship a third generation LTO tape drive.
"This is a superb move because the two companies have historically been strongest in different parts of the market - Certance in the entry-level and Quantum in the mid-range," said Bob Abraham, president of Freeman Reports. ®