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FYI: Quantum completes acquisition of Certance

  • 10 January, 2005 11:57

<p>Quantum completes acquisition of Certance</p>
<p>Combined company to provide unparalleled range of leading solutions for backup, recovery and archive</p>
<p>SYDNEY, Aust., Jan. 10, 2005 – Quantum Corp. (NYSE:DSS), a global leader in storage, today announced it has completed the acquisition of Certance, a privately held, global supplier of tape drives and data protection solutions. Under the terms of the definitive agreement announced on Oct. 20, 2004, Quantum acquired all of Certance for $60 million in an all-cash transaction. This purchase price excludes the distribution to the sellers of $34 million cash from Certance’s balance sheet. Quantum will now move quickly to integrate the two companies.</p>
<p>“Quantum will leverage the strengths of the newly combined company to offer customers of all sizes an unparalleled range of backup, recovery and archive solutions – from leading tape drive and media technologies, autoloaders and libraries to disk-based backup systems,” said Rick Belluzzo, chairman and CEO of Quantum. “By bringing together our product and service offerings, we will provide even greater value to both companies’ existing customers and partners and enhance our ability to serve others beyond our current base.”</p>
<p>As a result of the acquisition, Quantum will be the world’s largest volume supplier of both tape drives and tape automation.* The company will have an even stronger global channel program and more extensive connections to OEM customers and, with the breadth of Quantum’s portfolio, will be able to provide these partners with a single source of backup, recovery and archive solutions not available anywhere else.</p>
<p>The acquisition of Certance, which has been profitable for three consecutive years, is expected to be accretive in the combined company’s first year.</p>
<p>About Quantum
Quantum Corp. (NYSE:DSS), a global leader in storage, delivers highly reliable backup, recovery and archive solutions that meet demanding requirements for data integrity and availability with superior price/performance and comprehensive service and support. Quantum offers customers of all sizes an unparalleled range of solutions, from leading tape drive and media technologies, autoloaders and libraries to disk-based backup systems. Quantum is the world's largest volume supplier of both tape drives and tape automation and has pioneered the development of disk-based systems optimized for backup and recovery. Quantum Corp., 1650 Technology Drive, Suite 800, San Jose, CA 95110, (408) 944-4000, www.quantum.com.
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Quantum, the Quantum logo, DLT and DLTtape are trademarks of Quantum Corporation registered in the United States and other countries. All other trademarks are the property of their respective owners.</p>
<p>“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Specifically, without limitation, statements relating to: i) the completed acquisition of Certance, including expected benefits and impacts of the acquisition, ii) the expectation that the acquisition will be accretive in the combined company's first year, and iii) Certance's long term strategic objectives being accelerated within Quantum are forward-looking statements within the meaning of the Safe Harbor. These statements are based on management's current expectations and are subject to certain risks and uncertainties. As a result, actual results may differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ materially from those described herein include, but are not limited to, our inability to successfully integrate the businesses of Quantum and Certance, costs related to the acquisition, labor integration issues, our ability to successfully execute to our product roadmaps and timely ship our products, and acceptance of, or demand for, our products being lower than anticipated. More detailed information about these risk factors, and additional risk factors, are set forth in Quantum's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Risk Factors," on pages 35 to 46 in Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 3, 2004 and pages 38 to 49 in Quantum's Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 14, 2004. In particular, you should review the risk factors on pages 35, 36 and 39 of our Form 10-Q under the headings "Our operating results depend on new product introductions, which may not be successful, in which case, our business, financial condition and operating results may be materially and adversely affected," "In October 2004, we entered into a definitive agreement to acquire Certance, and the failure to successfully integrate this acquisition could harm our business, financial condition and operating results," and "We have made and may continue to make significant changes to our infrastructure and management, including consolidating or eliminating systems and functions and reducing the number of employees supporting functions. If we do not manage the changes that we implement successfully, our business could be disrupted and that could adversely impact our results of operations and financial condition." Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.</p>

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