Quantum Corporation to Acquire Connex Strategic Assets
Quantum Corporation , a provider of data protection and network storage, today announced it has signed a definitive agreement to acquire certain assets of Connex Inc., a provider of network attached storage (NAS) products and a subsidiary of Western Digital Corporation.According to Quantum, it intends to leverage Connex's complementary technology to enhance the range of features currently offered in Quantum's Snap Server(R) product line.
Under the terms of the agreement, Quantum will purchase key complementary technology, intellectual property and other assets of Connex in an all-cash deal valued at $11 million and integrate them into Quantum's Snap Appliances business. In addition, Western Digital will supply hard disk drives to Snap Appliances on a non-exclusive basis. The agreement does not involve SANavigator, a wholly owned subsidiary of Connex. The acquisition is expected to close by mid-August, subject to satisfaction of certain closing conditions. Quantum expects the transaction will be nominally dilutive in the fiscal year 2002, ending March 31, 2002.
"The Connex acquisition reinforces Quantum's strategic focus on providing a broader range of storage solutions for networked environments," said Michael Brown, chairman and CEO of Quantum. "It will enable us to accelerate our movement into higher-value, higher-growth segments of the NAS market by offering customers increased capacity, availability and performance at a lower total cost of ownership."