Aug 31, 2006 (Daily Camera - McClatchy-Tribune Business News via COMTEX) -- Boulder-based Exabyte Corp. said Wednesday it agreed to be bought by Tandberg Data Corp. in an expected $28 million transaction. If the deal is approved, the 21-year-old data storage company would join the ranks of a handful of longtime local industry players to recently get acquired.
Under terms of the agreement, Oslo, Norway-based Tandberg will acquire the assets of Exabyte, paying the company $22.5 million in cash and covering the balance of Exabyte's credit obligations.
Exabyte's local site is expected to remain operational and all of its employees will be offered jobs by Tandberg, Exabyte said. The company employs about 150 people in Boulder.
The deal comes nearly two months after Exabyte said it hired Denver-based St. Charles Capital to evaluate strategic alternatives. Exabyte later revealed its uncertainty to achieve profitability, that it defaulted on a line of credit to Wells Fargo and it owed Hitachi nearly $4.7 million, according to a Securities and Exchange Commission filing.
Getting acquired should give the company some new opportunities, and ease any trepidation for customers that thought it was too risky of a choice, said Kelly Beavers, Exabyte's vice president of product marketing.
"There really shouldn't be any more concern about Exabyte," he said. "Now our story is different. We're at least as stable and financially viable as anybody we compete with."
The companies' product lines -- and where those products are sold -- also are very different, creating very little overlap, said Bob Abraham, president of storage research firm Freeman Reports. Exabyte is strong domestically and Tandberg has strength internationally, he said.
"Strategically, it's definitely a positive move for both companies," Abraham said. "They complement each other's technologies very well."
Founded in 1985 by former employees of Storage Technology Corp., Exabyte (OTCBB: EXBY, 3.5 cents) burst out of the storage industry gates in 1987 with an 8-millimeter drive boasting a capacity of 2 gigabytes -- 10 times as much information as its nearest competitor.
During the next few years, the company expanded rapidly, growing to $310 million in sales and 1,200 employees in 1993. Product delays later hit the company hard, and layoffs and management changes ensued during the company's struggles.
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quote:Originally posted by The Phat Man: Press Release Source: Exabyte Corporation
Following the closing of the acquisition, the Company will retain certain liabilities owed to creditors; however, Exabyte is not expected to have any significant assets remaining for the payment of these obligations. In addition, subsequent to closing there will be no assets available for distribution to holders of the Company's Series AA preferred stock or its common stock. Exabyte intends to liquidate and dissolve immediately after the closing of the transaction.
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With that news.. (a paragraph in yesterday's news).. if it DOES go over .04, it'll be a miracle.. whoever owns this when the deal is done.. well.. anyone remember the old K-Mart stock? totally worthless..There is an order of who or what gets paid in deals like this. Sadly enough, those with common shares are last on the list.
-------------------- "As long as there are dreamers, there are dreams that will come true."
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Even with the old K-mart stock though I was making quite a bit of money towards the end. It would rise and drop all the time even though it was totally a dead stock. You never know. some rumor could spread and it will surge and than drop right back.
I just tried to sell and was only able to unload 5000 shares of this at what I wanted to get so I will ride out these last 15,000 and see what happens.
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hey I didn't want to turn this into a b1tching match but you really truly sound like some kid who got access to his dad's computer and wants to start a interweb fight.
All I was saying is that all you are doing is bashing, "I THINK IT WILL SEE .01 TODAY.IMHO", "BACK UP YHE TRUCK AND TAKE THIS POS TO THE LANDFILL.", "SUCKSSSSSSSSSSSSSS." Those are some of your previous posts and you just sound like a complete moron, actually you type like shakerzzz so it kinda makes sense.
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WHY ARE YOU SO WORRIED ABOUT WHAT I HAVE TO SAY.THE PR SAYS IT ALL THE SHARES ARE GOING TO BE WORTHLESS THATS THERE WORDS.I DONT WANT TO SEE ANY ONE LOSE ANY MONEY THAT INCLUDES YOU ALSO.
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guts whats the big deal here? no one is going to make a decision on what either of your opinions are! just put dd and buy and sell prices or just let it fade away into the forum history untill something new comes along!
-------------------- Trading is a blast!!
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I'm still holding on this, still hoping for miracle to happen. I got in too earlier at a high price. Gezz... I really hope this can go back to at least 0.06 which was the price I bought it for.
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some pos imed me saying i am pumping this stock, we all know what the pr says, we also know where the share holders stand, if this transaction takes place. Let me make it clear for the 12th time it is a pos and is gonna die when the transaction takes place! i flip for profit i said let this thread die! It is dangerous, it is crazy unless you know what you are doing and can afford to lose everything!!!! So this will be my last post here unless a question comes up or a pr comes out, I DO NOT PUMP ANYTHING EVER!!! FACTS ONLY!! MAKE YOUR OWN DECISIONS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
-------------------- Trading is a blast!!
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