Quantum Expands Tape Portfolio Through Acquisition
Quantum acquires Benchmark Storage Innovations for $11 million and up to 15 million shares of stock.Tape industry player Quantum Corp. announced today its acquisition of Benchmark Storage Innovations Inc. for $11 million and up to 15 million shares of stock. Quantum, of Milpitas, Calif., makes high-end tapes, tape automation hardware and network-attached storage. The company already owns 20 percent of Benchmark, a Boulder, Colo., maker of low- and midrange tape hardware. Quantum also announced that it is outsourcing its tape manufacturing to Jabil Circuit Inc., of St. Petersburg, Fla. Jabil will take over Quantums plant in Penang, Malaysia, and will hire most of the current Quantum employees there, officials said.
"Reinforcing the strength of our tape business was essential that was priority No. 1," Rick Belluzzo, the recently hired CEO of Quantum, and a former president of Microsoft Corp., told eWEEK.