Imation has announced that it has completed the $329 million acquisition of Memorex. Depending upon Memorex's financial performance, Imation will pay another $5-$45 million over the next three years.
Imation Corp (NYSE: IMN) today announced that it has completed the previously announced acquisition of Memorex in an all cash transaction, from Hanny Holdings of Hong Kong and other shareholders of Memorex. Actual purchase price was $329 million, after net asset adjustments were made to the original purchase price of $330 million. Additional cash consideration ranging between $5 million and $45 million will be paid out over a period of up to three years after close, contingent on financial performance of the purchased business. In addition, customary closing costs and advisory fees of approximately $5 million have been incurred.
"This acquisition is a major strategic milestone for Imation, as we implement our profitable growth strategy," said Bruce Henderson, Imation Chairman and CEO. "We are adding a powerful consumer brand and the U.S. market share leader in recordable CDs and DVDs, as well as an experienced retail team. With Imation's deep technology expertise, strong business-to-business brand, global footprint, broad product portfolio and industry experience, we are creating a new global powerhouse in the data storage industry. Over the past three months, we have completed detailed integration planning and look forward to a rapid transition to the combined company."
According to the press release, Memorex will continue to do business as usual. However, they will now be a division of Imation. If you'd like to read more, Imation's entire press release can be found here.
