Tandberg Data to Acquire Exabyte for $28MBy Chris Preimesberger Print
The Norwegian tape drive maker provides "reprieve" for a struggling U.S. firm by creating a new $215 million company.Digital tape storage manufacturer Tandberg Data announced Aug. 30 that it is acquiring a competitor, U.S. data storage company Exabyte, for $28 million in cash and stock.
In the transaction, Oslo-based Tandberg Data will pay $22 million in cash at the closing of the deal, which is expected to take place in Q4.
The merged company will have projected revenue of $215 million for 2006, Tandberg executive vice president Ken Cruden told eWEEK.
If so, it will trail only Quantum/ADIC ($814 million in 2005 revenue) among manufacturers of tape drives and tape automation equipment, he said.
Tandberg Data, whose U.S. headquarters is in Poway, Calif., makes professional-level tape information storage hardware and software based on the SLR, LTO and DLTtape linear technology platforms.
Exabyte, based in Boulder, Colo., makes tape backup, restore and archival systems for small to midsize businesses.
"This is a good deal for both companies and the industry," said Robert Amatruda, storage analyst with IDC in Framingham, Mass.
Read the full story on eWEEK.com: Tandberg Data to Acquire Exabyte for $28M
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