Nexsan to Go Private in Deal With Spear Point Capital Management
Nexsan, Inc. will spin out from Imation Corp. in a transaction with Spear Point Capital Management LLC, that will make the company private.
Imation's Bob Fernander, CEO, and Geoff Barrall, CTO will continue to run the Nexsan business and will have seats on the new board.
Going private and partnering with Spear Point Capital strengthens Nexsan's financial foundation ensuring growth and new product development.
The investment from Spear Point will help fund engineering roadmaps, including plans for all-flash versions of Unity, and expansion of its block storage lines.
Additional investments in sales, marketing, and geographic expansion are expected.
Continuing its 100% channel model, the newly private Nexsan will increase account coverage, including channel assistance and marketing initiatives to drive growth and customer adoption.
This is a transformative move for Nexsan, allowing them to
better serve their customers, enable partners, and accelerate growth of business.
Over the past year, Nexsan has been evolving as a company. In October 2015, it appointed Fernander as CEO and acquired private cloud and file share company, Connected Data.
Barrall, CTO of the new Nexsan led the development and launch of its product Unity, a new concept in unified NAS & SAN storage products that adds enterprise file sync and share, multi-site sync and secure archive.
The company invested in sales and marketing, and restructured manufacturing operations which increased gross margins by over 10%. As a result, the company is enjoying Q/Q revenue growth, as seen in Imation's most recent quarterly earnings report.
The deal with Spear Point is expected to close in Q1 2017.