Tandberg Data has completed the acquisition of Exabyte Corporation.

Tandberg Data announced on August 30, 2006 that it had signed an agreement with the US data storage company Exabyte Corporation. It now has completed the acquisition Exabyte Corporation for $28 million. The merged company, with an expected revenue of $200 million for 2006, is now the second largest player in data storage (OEMs not included).

In EMEA and APAC, the combined company will trade under the Tandberg Data name. In the Americas, Tandberg Data Corporatation will keep using the Exabyte brand for some of its products, and will continue to sell the full range of Exabyte and Tandberg products.

“Tandberg Data has now achieved an attractive number two position, and a more optimal size will give us a better opportunity to build up an even stronger company for the our customers, employees and shareholders. At the same time it is vital that we concentrate our resources in the best possible way and locate our key resources where it is most suitable”, stresses Tandberg Data CEO Gudmundur Einarsson.

The complementary strengths of the two companies in the various geographic markets around the world has made Tandberg Data a truly global competitor in the storage industry. In addition, the combined product portfolios of the two companies will provide customers with the full range of state-of-the-art, cost effective products and technologies to meet their needs. Finally, the operational synergies resulting from the combination will allow the new company to operate from a position of financial strength and stability in the future.

The merger is expected to yield cost synergies of approximately $15 million with effect from the first quarter of 2007. Additionally, Tandberg Data expects to take out revenue synergies that have yet to be quantified.

Under the agreement, Tandberg Data is to acquire all assets, rights and certain liabilities in the US data storage company Exabyte Corporation. Tandberg Data has paid $28 million, which is distributed among a number of Exabyte’s creditors. $22 Million has been paid in cash at closing.