History (1994): Quantum Completes Acquisition of DEC Storage Business

Quantum Corp. (Milpitas, CA) has completed the purchase of Digital Equipment Corporation (DEC)’s hard disk drive, tape drive, SSD, and thin-film heads business for $360 million, subjected to adjustments in accordance with the agreement.

The purchase is being financed with $290 million cash and bank debt and a note to DEC for $70 million.

The transaction includes Digital’s 81% ownership position in Rocky Mountain Magnetics (Louisville, CO), developer of MR head technology.

The 2 companies also finalized a supply agreement covering DEC’s internal storage requirements for its core systems and StorageWorks businesses.

The specific terms were not disclosed, but the agreement guarantees Quantum a significant percentage of DEC’s internal hard drive, tape, and solid-state requirements.

Quantum also announced changes in its organization to support its new business areas. The company now has 4 business units:

1. The High Capacity Storage Group develops products for the higher end workstation and server markets. This group, headed by Robert K. Maeser, president, will now include Digital’s disk drive business, and will maintain development centers in Milpitas, CA and Shrewsbury, MA.
2. The Desktop and Portable Storage Group, headed by Michael Brown, president, remains focused on drives designed for desktop and notebook PCs.
3. The Recording Heads Group is a newly-formed organization headed by Ken Lee, Quantum’s CTO and EVP of technology and engineering. The group encompasses Digital’s thin-film heads business, including both its Shrewsbury operations and Rocky Mountain Magnetics.
4. The Specialty Storage Products Group is a newly-formed organization which comprises the digital linear tape, SSD, and flash memory card businesses. It is headed by Gina Borino as VP and GM who continues in her role as VP of corporate planning and development.

This article is an abstract of news published on the former paper version of Computer Data Storage Newsletter on issue 81, published on October 1994.