Imation
sent out a press release earlier today, announcing plans to acquire Memcorp Inc. for $60 million in cash and notes. Until now, Memcorp
has been operating under a long-term license agreement for the Memorex brand. By acquiring the company, Imation will gain full control of
the Memorex brand and extend its product portfolio beyond removable media.
Imation Corp. (NYSE: IMN), a worldwide leader in
removable data storage, today announced that it has entered into a definitive agreement to acquire certain assets of Memcorp Inc. and
Memcorp Asia Limited (together known as "Memcorp") from privately held Hopper Radio of Florida, Inc.
The purchase price for the
assets includes approximately $23 million in cash and $37.5 million in three-year notes, plus a potential earn-out of up to $20 million
over three years, dependent on financial performance of the purchased business. Imation also expects to invest approximately $15 million
in additional working capital after the acquisition closes. The transaction is expected to close in the third quarter of 2007, subject to
customary closing conditions and governmental approvals.
Imation expects the acquisition to contribute an estimated $10 to
$12 million in operating income and add approximately $200 million in annual revenue in the first full year of operation. If you'd like
to read more, Imation's entire press release can be found here.
