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January 02, 2013

More Room for Storage: Imation Purchases Nexsan Corporation

By Joe Rizzo, TMCnet Contributing Writer

Imation is a global scalable storage and data security company located in Minnesota. Imation has been involved with data storage for well over 50 years. It has been providing solutions designed to protect data stored in the world’s first data centers, beginning with magnetic tape solutions. Some of the brands listed under Imation are TDK, Memorex and XtremeMac.

On January 2, 2013 Imation announced that they purchased Nexsan Corporation. The acquisition came in at a cost of about $120 million. This is broken down into a cash payment of $105 million with an additional 3,310,324 shares of common stock currently valued at about $15 million.

Nexsan is a privately held corporation located in Thousand Oaks, California. It provides disk-based and solid-state storage systems. According to Imation, it had $82 million in revenues in 2011 and is still growing. Nexsan has more than 33,000 systems installed at 11,000 customers worldwide. The company delivers its data storage systems through a worldwide network of cloud service providers, value-added resellers and solution integrators. Some of the services that they provide are backup and recovery, disaster recovery and long term bulk storage. They also have a variety of hardware systems.

Mark Lucas, Imation’s CEO, is quoted as saying, “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. 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.”

Nexsan has approximately 200 workers in the United States, Canada and the United Kingdom. The work staff will join Imation even though it will continue to keep its operations in California.

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Edited by Rich Steeves
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