James Delahunty
22 Jan 2006 18:34
Imation, a well known manufacturer of blank media products and other data storage products, has agreed to purchase its competitor Memorex in a $330 million deal. Also, depending on future financial performance, additional payments of $5 million to $45 million may be paid. The acquisition would complete in the second quarter, and Memorex should be fully integrated with Imation by the end of the year, according to both of the companies.
The combined company would maintain Memorex's Cerritos, California headquarters. "Added to our technology expertise, strong B2B brand, global footprint, broad product portfolio and industry experience, we are creating a new global powerhouse in the data storage industry," said Imation chairman and CEO Bruce Henderson.
Earlier this month, Imation also announced it has begun its scale-up of manufacturing for HD DVD and Blu-Ray optical recordable media in preparation for product introduction in early 2006.
Source:
Betanews