Imation Corp., the technology company spun off from 3M Co. in 1996, acquired Nexsan Corp. for about $120 million, adding disk-storage products to its lineup and providing more access to small and mid-sized businesses.
Imation will pay about $105 million in cash, as well as stock worth approximately $15 million, the Oakdale, Minnesota-based company said today in a statement. Nexsan, a closely held company in Thousand Oaks, California, has more than 11,000 customers, Imation said.
The deal is part of a comeback plan for Imation, which is projected to report its sixth straight year of net losses and fourth consecutive annual decline. The company is trying to rebound by finding higher-growth markets in data storage and security. Nexsan, which will add about 200 employees to Imation, had $82 million in 2011 revenue.
“Nexsan’s management team has grown this business from startup to more than $80 million, with strong gross margins,” Imation Chief Executive Officer Mark Lucas said in the statement. “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.”
Imation shares rose 5.2 percent on Dec. 31, the most recent trading day. The stock fell more than 18 percent last year, following a 44 percent drop in 2011.