Milpitas, Calif., Oct. 15, 2002 – Quantum Corp. (NYSE:DSS), a leading provider of data protection systems, today announced that it has signed a definitive agreement to spin off certain assets related to its Network Attached Storage (NAS) business to help form a new company, Snap Appliance, Inc. This strategic move enables Snap Appliance, Inc. to leverage Quantum’s existing leadership in NAS through Quantum’s Snap ServerÒ and GuardianÔ product families while allowing Quantum’s Storage Solutions Group to focus exclusively on data protection.
Under the terms of the agreement, Snap Appliance, Inc. will purchase Quantum’s NAS assets for an aggregate purchase price of $11.3 million, including a minority equity interest, and will offer employment to a substantial number of Quantum NAS employees. In addition, Quantum has the option to receive up to $1.9 million in additional consideration in connection with future financings. The new company will combine these assets and key talent with next generation software technology from privately held Broadband Storage and will be led by key storage industry executives. Other investors in the new company include Moore Capital Management and Mellon Ventures, Inc., an affiliate of Mellon Financial Corporation. The transaction is expected to close by the end of the month.
“The formation of Snap Appliance, Inc. is an important step for the Storage Solutions Group as it will enable us to devote all of our resources to our data protection strategy, while at the same time positioning Snap Appliance, Inc. to be a clear leader in the NAS market,” said Larry Orecklin, president of Quantum’s Storage Solutions Group. “Quantum will also partner with Snap Appliance, Inc. to integrate product offerings and work together on future market opportunities. Our customers will benefit from better NAS and data protection solutions, and our partnership will allow us to work hand-in-hand with a focused development team on complementary and simplified storage solutions.”
“Snap Appliance, Inc. will stand as a powerful combination of essential ingredients from key industry partners,” said Eric Kelly, president and CEO of Snap Appliance, Inc. “Snap Appliance, Inc. will leverage the Snap brand and leadership position as the foundation for delivering simplified storage solutions. Equally important, Snap Appliance, Inc. and Quantum will work together strategically to drive ongoing value creation across the two businesses.”
Distribution, Service and Support
Snap Server and Guardian server families will continue to be available through targeted distributor and reseller channels in North America. To ensure that existing channel partners can continue to sell these products without interruption, Quantum will work with them and Snap Appliance, Inc. to provide for a seamless transition.
Snap Appliance, Inc. and Quantum will continue to provide warranty and technical services for all current Quantum NAS customers worldwide.
Part of Quantum’s Broader Restructuring Actions
Today’s announcement is a major component of the second phase of Quantum’s two-phased restructuring plan, which was announced on September 9 and is intended to reduce costs and drive profitability. Further information about this second phase and the Snap Appliance, Inc. transaction will be provided when Quantum announces its fiscal second quarter earnings later this month.
Quantum
Quantum Corporation (NYSE:DSS) is sinds 1980 uitgegroeid tot een
vooraanstaand leverancier van tape-opslagsystemen die hoge prestaties
leveren en zeer betrouwbaar, kostenbesparend en schaalbaar zijn. De
producten van het bedrijf worden gebruikt voor het maken van back-ups, voor
archivering en voor het herstellen van belangrijke zakelijke data. Quantum
is de grootste leverancier van DLTtape-automatiseringssystemen,
DLTtape-drives, Super DLTtape-drives en NAS Server-producten (voor
netwerkopslagsystemen in werkgroepen).
In het boekjaar dat eindigde in maart 2002 behaalde Quantum een omzet van
1,1 miljard dollar
Contactpersoon:
Marije Stijnen
Storage Solutions Group
Quantum Storage UK Limited
t: 00 44 (1256) 84 87 07
marije.stijnen@quantum.com
PR-bureau:
Marije Verdouw
Lubbers & De Jong B.V.
t: 00 31 (20) 421 05 65
marije@l-dj.nl
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, statements regarding: 1) expected benefits associated with the contemplated transaction, including an improved focus of resources, better NAS and data protection solutions, strategic efficiencies, and the creation of the new Snap Appliance, Inc. as a powerful foundation for delivering NAS leadership; 2) the expected timing of the closing of the acquisition; 3) Quantum’s and Snap’s continued strategic relationship; and 4) a seamless transition for customers, are all 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 Quantum’s ability to successfully transition the NAS business to Snap Appliance, Inc., Snap Appliance, Inc.’s ability to successfully integrate Quantum’s NAS business, competitive pricing pressure in the market for data protection and NAS products, unforeseen technological limitations, operational difficulties, and the ability of competitors to introduce new products that compete more successfully with our products.
More detailed information about risk factors and uncertainties relating to Quantum's business generally, including risk factors and uncertainties in addition to those described above, are set forth in Quantum's periodic filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, those described in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Trends and Uncertainties," pages 44 to 54, in our Annual Report on Form 10-K filed with the SEC on July 1, 2002, those described in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Trends and Uncertainties," pages 40 to 49, in our Quarterly Report on Form 10-Q filed with the SEC on August 14, 2002 and those described in subsequently filed reports. Such reports contain and identify important factors that could cause actual events and results to differ materially from those contained in our projections or forward-looking statement. Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.