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Tandberg Acquires Data Storage Company Exabyte for USD 28 Million

Tandberg Data has acquired Exabyte Corporation for USD 28 million. The merged company with expected revenue of USD 215 million for 2006 will be the second largest player in data storage (OEMs not included). The deal comes less than a week after Quantum snapped up ADIC, reducing the number of tape vendors.

"This combination brings together two respected companies, two complementary product portfolios and we believe it benefits their customers and strengthens the VXA tape technology roadmap," said Bruce Henderson, Imation Chairman and CEO.

"We have worked closely with both companies in the past and look forward to working with the newly combined company going forward. We will continue to act as exclusive distributor for VXA tape media globally and will continue to support their customers with their tape media needs," added Frank Russomanno, Executive Vice President and COO.

According to Tandberg, USD 22.5 million of the purchase price will go to pay off an outstanding Wells Fargo loan and money owed to some of Exabyte's Original Equipment Manufacturers (OEM), including Imation Corp., Hitachi Ltd. and Solectron Corp.
"Following the closing of the acquisition, the company will retain certain liabilities owed to creditors; however, Exabyte is not expected to have any significant assets remaining for the payment of these obligations," Tandberg said in a release. "In addition, subsequent to closing there will be no assets available for distribution to [stakeholders]."

"Users should be happy that they're getting support from a company with more assets," Arun Taneja, founder of the Taneja Group, a Hopkington, Mass., consulting firm said. "The worst case scenario is that the company completely goes under and users are left totally holding the bag."


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