Quantum gets financing commitment from KeyBanc for Advanced Digital purchase

By Sara Rosenberg

New York, May 2 - Quantum Corp. has received a commitment from KeyBanc Capital Markets for financing to help fund its about $770 million acquisition of Advanced Digital Information Corp., according to a company news release.

Under the purchase agreement, Advanced Digital shareholders will receive $12.25 per share in cash, with the right to elect, in lieu of cash, 3.461 shares of Quantum stock for each share they own. The stock election is subject to pro-ration such that Quantum will issue no more than approximately 10% of the total merger consideration in Quantum stock.

Quantum expects the transaction to be up to 15 cents accretive on a cash earnings per share basis, with annual cost synergies of about $45 million in the first full year of combined operations.

The transaction, which is expected to close in three to four months, is subject to customary closing conditions and regulatory approvals, as well as approval by Advanced Digital shareholders.

Quantum is a San Jose, Calif., provider of storage, backup, recovery and archive services. Advanced Digital is a Redmond, Wash., provider of intelligent storage products for the open systems marketplace.

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