Imation Acquires Nexsan Corporation
Acquisition Further Strengthens Imation’s Tiered Storage and Security
Solutions Growth Platform, Accelerates Strategic Transformation
OAKDALE, Minn. -- January 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
“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
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
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
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.
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.
Scott Robinson, 651-704-4311
Additional Press Contacts:
Mary Rawlings-Taylor, 651-704-6796
Schwartz MSL Public Relations, for Imation Corp.
Mercedes Carrasco, 781-684-0770
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