Imation Acquires Nexsan
Imation today announced that it has acquired Nexsan
Corporation, 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.