QUANTUM CORPORATION TO ACQUIRE ATL PRODUCTS, INC. WORLDWIDE TAPE-DRIVE LEADER EXPANDS STORAGE SYSTEMS BUSINESS THROUGH PROPOSED ACQUISITION OF LEADING TAPE-LIBRARY PROVIDER
MILPITAS, Calif. -- (BUSINESS WIRE) -- May 19, 1998 -- Quantum
Corporation (NASDAQ/NMS:QNTM - news), the worldwide revenue leader in tape
drives and ATL Products, Inc. (NASDAQ/NMS:ATLPA - news), a leader in
tape-library systems, today announced that Quantum will make an offer to acquire
ATL in an all-stock transaction valued at approximately $300 million.
In the proposed transaction, all of the outstanding stock of ATL
would be converted into common stock of Quantum and all ATL stock options would
be assumed by Quantum.
ATL, which offers high-end and mid-range tape-automation libraries,
would become a wholly owned subsidiary of Quantum. Quantum's existing
tape-automation business, which offers entry-level tape automation libraries and
tape autoloaders, would be integrated into the ATL subsidiary.
ATL has previously announced that it will market specific Quantum
automation products as part of an existing OEM relationship. ATL would operate
at arm's length from Quantum's other existing businesses, and report to Peter
van Cuylenburg, president of Quantum's Specialty Storage Products Group.
"Quantum is already the market leader across a broad range of
storage: desktop hard disks, solid state disks and tape drives," said Michael
Brown, Quantum's CEO.
"Four years ago we started to grow our tape drive business from $150
million to over $1 billion in revenues as DLTtape(TM) became the industry de
facto standard for mid-range backup and archival solutions. Moving forward, the
amount of digital content being managed by IS organizations is growing rapidly,
making the role of storage even more critical. Quantum's focus will include
expanding our capabilities to help customers manage this content through
tape-automation solutions, increasing the scope of our existing $90 million
storage systems business. The acquisition of ATL, a leading tape-automation
systems provider, would allow Quantum to accelerate these plans.""The combination of the Quantum and ATL tape-automation systems
businesses would offer our customers the most comprehensive product line in the
industry," said Kevin Daly, chairman, president and CEO of ATL.
"Quantum and ATL have enjoyed a strong strategic relationship since
the early days of DLTtape. This integration of our highly complementary skills
and products would enable us to better serve our customers, with the two
companies able to leverage marketing, product development, distribution and
Subject to the approval of ATL's shareholders as well as clearance
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other
customary closing conditions, the transaction is expected to be completed by
Founded in 1980, Quantum Corp. (www.quantum.com) is a diversified
mass storage company with leadership positions in both fixed and removable
storage markets. In calendar 1997, Quantum was the highest volume global
supplier of hard disk drives for personal computers and the worldwide revenue
leader for all classes of tape drives.
The company sells a broad range of storage products to OEM and
distribution customers worldwide. Quantum's sales for the fiscal year ending
March 1998 were $5.8 billion.
ATL is recognized worldwide as a market innovator in the design,
manufacturing and service of automated DLTtape library systems having earned a
reputation for superb quality and reliability. Delivering library systems
through OEMs and a worldwide network of authorized resellers, ATL has
approximately 5,000 library systems currently installed worldwide -- including
almost half of the Fortune 100 companies.
Serving the world market for storage automation, corporate
headquarters for ATL are in Irvine, Calif. Sales and service are provided
throughout major cities in North America, Europe and Asia. For additional
information, call ATL at 714/774-6900, or browse the companywebsite at
Except for historical information, the matters discussed in this news
release that may be considered forward-looking statements are subject to certain
risks and uncertainties that could cause the actual results to differ materially
from those projected, including uncertainties in the market, the timely
development and acceptance of new products, the ability to successfully
integrate and expand ATL's operations, and other risks detailed from time to
time in the companies' SEC reports. Quantum and ATL assume no obligations to
update the information in this release.
Note to Editors: Quantum, the Quantum logo, DLT and DLTtape are
trademarks of Quantum Corporation.
Members of the media, suppliers, customers and channel partners
should continue to work directly with ATL.
Holly Campbell, 408/894-5058 (Press Contact)
Nancy Morrison, 408/232-6550 (Press Contact)
Renee Budig, 408/894-5563 (Investor Relations Contact)
ATL Products, Inc.
Scott Harlin, 714/477-7935