Acquisition Further Strengthens Imation’s Tiered Storage and Security
Solutions Growth Platform, Accelerates Strategic Transformation
OAKDALE, Minn.--(BUSINESS WIRE)--Jan. 2, 2013--
Imation Corp. (NYSE: IMN), a global scalable storage and data security
company, has reached an important milestone in its strategic
transformation. Imation today announced that it has acquired privately
held Nexsan® Corporation, a Thousand Oaks, Calif.-based
provider of disk-based storage systems. As the Company continues to
execute its strategy, Imation is leveraging its deep data storage core,
building a platform for long-term growth and improving operating margins
in high-growth data storage and security solutions markets.
The acquisition of Nexsan brings to Imation a proven technology platform
and a robust portfolio of disk-based and hybrid disk-and-solid-state
storage systems with more than 11,000 existing customers worldwide. It
is expected to significantly accelerate Imation’s growth in the small
and medium-sized business (SMB) and distributed enterprise (SME) storage
markets. Imation will provide the Nexsan business with global scale and
a well-known storage brand for global expansion. With SMBs and SMEs
struggling to address their rapidly increasing data storage and
management needs, the combined Imation and Nexsan portfolio will offer
customers an attractive, price / performance alternative to competitive
offerings.
The combination cash-and-stock transaction included approximately $105
million in cash and 3,319,324 Imation common shares, the equivalent of
approximately $15 million.
“Imation’s acquisition of Nexsan is an exciting next step in our
strategic transformation, which includes investing in growth platforms
in data storage and security solutions, where we are targeting markets
with strong growth rates,” said Mark Lucas, president and CEO of
Imation. “Our strategy includes focusing on the underserved SMB market
with purpose-built storage systems and appliances. This is a market that
Nexsan knows well. Nexsan’s management team has grown this business from
start-up to more than $80 million, with strong gross margins. Nexsan is
a successful company that is addressing some of today’s fastest growing
trends in storage, and we are pleased that its management team,
including CEO Philip Black, will join Imation. The combination of
Nexsan’s products, technologies, and talented teams with Imation’s
global reach and infrastructure will be an excellent accelerator for our
growth strategy in storage solutions,” concluded Lucas.
“We are excited to have Nexsan become part of Imation,” said Philip
Black, CEO of Nexsan. “Imation provides us the scale and global
footprint to expand our business, while still keeping intact our award
winning partner program, our strong management team and employees, and
our innovative products and roadmap. We look forward to working as part
of Imation to deliver compelling solutions that meet the growing
storage, archive and compliance requirements of businesses worldwide.
This is good news for Nexsan channel partners, employees and customers.”
Nexsan’s 2011 revenues were $82 million and are continuing to grow, with
gross margins in the 40 percent range. This acquisition is expected to
be immediately accretive to Imation’s EBITDA.
Approximately 200 employees, based in the U.S., U.K. and Canada, have
joined Imation with this acquisition. The Nexsan business will continue
to operate within Imation from Nexsan’s current headquarters in Thousand
Oaks, Calif., under existing management. Integration and global
expansion activities between Imation’s Tiered Storage and Security
Solutions business and Nexsan will be determined in first quarter 2013.
Imation Schedules Fourth Quarter 2012 Financial Results Conference
Call
Imation also announced that it is scheduled to release the Company’s
fourth quarter 2012 financial results on Wednesday, February 13, 2013 at
6:00 a.m. Central time. A teleconference for the financial community and
a live webcast are scheduled from 9:00 to 10:00 a.m. Central time.
The live webcast of the teleconference will be available on the Internet
at www.imation.com
or www.streetevents.com.
A replay of this webcast will be available at either of these websites
through Friday, February 22, 2013. A taped replay of the teleconference
will also be available beginning at 11:00 a.m. Central time, February
13, 2013 until 11:00 p.m. Central time February 22, 2013 by dialing
(855) 859-2056 or (404) 537-3406 (Conference ID #64544023).
All remarks made during the teleconference will be current at the time
of the call and the replay will not be updated to reflect any subsequent
developments.
About Imation Corp.
Imation (NYSE: IMN) is a global scalable storage and data security
company. The Company's portfolio includes tiered storage and security
offerings for business and products designed to manage audio and video
information in the home. Imation reaches customers in more than 100
countries through a powerful global distribution network and well
recognized brands. Additional information about Imation is available at www.imation.com.
About Nexsan
Nexsan® is a leading provider of data storage systems with
more than 33,000 systems installed at 11,000 customers worldwide.
Nexsan’s pioneering Hybrid Storage systems combine solid-state
technologies, disk storage and advanced software to deliver radically
new levels of performance and capacity at lower cost. The company’s
advanced technologies enable organizations to optimize traditional,
virtual and cloud computing environments for increased productivity and
business agility. The company delivers its data storage systems through
a worldwide network of cloud service providers, value-added resellers
and solution integrators. Nexsan is based in Thousand Oaks, Calif. For
more information, visit www.nexsan.com.
About Nexsan’s Portfolio
Nexsan’s E-Series disk arrays deliver industry-leading storage density,
reliability, and power management offering very high value block-based
storage. Nexsan’s NST line of unified, hybrid storage combines solid
state technology with spinning disk to offer high performance and
capacity at affordable price points. The Assureon secure archive systems
are the gold standard for data offload, compliance, and secure cloud
deployments. Nexsan storage solutions are ideal for a broad range of
applications— including VM storage, cloud storage, database,
surveillance, bulk storage, backup and recovery, disaster recovery, and
archive. Nexsan products are sold 100% through channel partners who
benefit from Nexsan’s deal registration program and extensive partner
program elements.
Risk and Uncertainties
Certain information contained in this press release which does not
relate to historical information may be deemed to constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain
risks and uncertainties that could cause our actual results in the
future to differ materially from our historical results and those
presently anticipated or projected. We wish to caution investors not to
place undue reliance on any such forward-looking statements. Any
forward-looking statements speak only as of the date on which such
statements are made, and we undertake no obligation to update such
statements to reflect events or circumstances arising after such date.
Risk factors include our ability to successfully implement our strategy;
our ability to grow our business in new products with profitable margins
and the rate of revenue decline for certain existing products; our
ability to identify, value, integrate and realize the expected benefits
from any acquisition which has occurred or may occur in connection with
our strategy; the ability of our data security products to withstand
cyber-attacks; the ability to quickly develop, source, introduce and
deliver differentiating and innovative products; our potential
dependence on third parties for new product introductions or
technologies in order to introduce our own new products; the ready
availability and price of energy and key raw materials or critical
components including due to the effects of natural disasters and our
ability to pass along raw materials price increases to our customers;
continuing uncertainty in global and regional economic conditions
including adverse effects of the ongoing sovereign debt crisis in
Europe, and related austerity measures and their potential impact on
European economic growth; the possibility that our goodwill or any
goodwill that we acquire may become impaired; the seasonality and
volatility of the markets in which we operate; foreign currency
fluctuations; changes in European law or practice related to the
imposition or collectability of optical levies; significant changes in
discount rates and other assumptions used in the valuation of our
pension plans; the possibility that our intangible assets may become
impaired; the possibility that our acquisition related contingent
consideration, which is recorded at fair value and revalued each period,
differs from the obligation recorded during the previous period
resulting in income or expense being recorded on the consolidated
statements of operations; changes in tax laws, regulations and results
of inspections by various tax authorities; our ability to successfully
defend our intellectual property rights and the ability or willingness
of our suppliers to provide adequate protection against third party
intellectual property or product liability claims; the outcome of any
pending or future litigation; failure to adequately protect our
information systems from cyber-attacks; our ability to meet our revenue
growth, gross margin and earnings targets and the volatility of our
stock price due to our results or market trends, as well as various
factors set forth from time to time in our filings with the Securities
and Exchange Commission.
Source: Imation Corp.
Investor Contact
Imation Corp.
Scott Robinson,
651-704-4311
Email: srobinson@imation.com
or
Additional
Press Contacts:
Imation Corp.
Mary Rawlings-Taylor,
651-704-6796
Email: mjrawlings-taylor@imation.com
or
Schwartz
MSL Public Relations, for Imation Corp.
Mercedes Carrasco,
781-684-0770
Email: imation@schwartzmsl.com