Imation offers data storage and security solutions aimed at large businesses and government organizations. It has customers in more than 100 countries, and hopes that the acquisition of Nexsan will help it to improve not only its core platform and products, but also its operating margins.
So. Much. Tech.
Some of the biggest names in tech are coming to TNW Conference in Amsterdam this May.
Nexsan, on the other hand, has a portfolio of disk-based and solid-state storage solutions which have been installed by more than 11,000 customers worldwide. The company is most well known for pioneering a hybrid storage system that combines both solid-state drives and conventional disk storage for faster (and cheaper) performance.
These products are aimed at smaller businesses, and Imation hopes that the acquisition of Nexsan will help it to target more small and medium-sized enterprises (SME) as a result.
In a press release issued today, Imation said that the acquisition consisted of roughly $105 million in cash and more than 3 million Imation common shares, worth around $15 million in total.
Mark Lucas, president and CEO of Imation said the deal was part of the company’s “strategic transformation” which includes investing in additional growth platforms for both data storage and security solutions.
Around 200 hundred Nexsan employees, currently based in the United States, United Kingdom and Canada have joined Imation as part of the acquisition. The firm made $82 million in revenue back in 2011, with growth margins “in the 40 percent range”, according to the company.
Philip Black, CEO of Nexsan, said the deal would give the company both the scale and global presence needed to expand further. “This is good news for Nexsan channel partners, employees and customers,” he said.
Image Credit: KIMIHIRO HOSHINO/AFP/Getty Images