Benzinga | Jul 19, 2021 08:15AM EDT

Quantum Acquires Surveillance Portfolio and Assets from Pivot3 For $8.9M In Cash And Stock

Quantum Corporation (NASDAQ:QMCO) today announced an agreement to acquire the video surveillance portfolio and assets of Pivot3, a pioneer in hyperconverged infrastructure (HCI) and a leader in intelligent software solutions for the security and surveillance markets. The acquisition brings a diverse portfolio of video surveillance appliances, network video recorders (NVRs), and management applications along with a scale-out hyperconverged software platform, which going forward will all be offered under the Quantum VS-Series product portfolio. Together with Quantum's current line of NVR servers, the StorNext(tm) File System, and ActiveScale(tm) object storage, the Pivot3 additions round out a comprehensive surveillance and security portfolio, spanning small to multi-petabyte deployments.

"Surveillance cameras are the biggest data generator on the planet, and Pivot3 has established themselves as one of the leaders in this space by pioneering the use of hyperconverged software for surveillance recording," says Jamie Lerner, Chairman and CEO. "This acquisition represents another key step in Quantum's transformation, solidifying the company as a serious player in the multi-billion-dollar video surveillance market, expanding our global customer base, sales channels, and technical expertise specific to this industry."

Highlights of the Acquisition

* Transaction purchase price totals approximately $8.9 million in cash and stock

* Acquisition projected to be slightly accretive to EBITDA through remainder of Fiscal 2022

* Expands video surveillance portfolio with hardware and software offerings that will be offered under the Quantum VS-Series portfolio

* Builds on an established reputation for quality, world class services and support and a mature supply chain in the video surveillance market

* Brings core intellectual property around distributed storage, data placement, erasure coding, and storage quality of service

* Expands global customer base with over 500 new surveillance customers with some of the most demanding mission critical deployments in the world including airports, mass transit, casinos, education, and smart cities

* Adds key employees to engineering, product and sales organizations with deep expertise in video surveillance solutions