Here's some surprising news. Imation has announced that they will be acquiring Memorex in an all cash transaction of $330 million plus contingent payments of up to $45 million.
Imation Corp (NYSE: IMN - News) and Memorex International, Inc, today jointly announced that they have entered into a definitive agreement under which Imation will acquire Memorex International in an all cash transaction for $330 million. Additional cash consideration ranging between $5 million and $45 million would be paid out over a period of up to three years after close, contingent on financial performance of the purchased business. The Boards of both companies have approved the transaction...
..."This acquisition is a major strategic milestone for Imation, as we implement our profitable growth strategy. It is also a win-win for both companies' customers and shareholders," said Bruce Henderson, Imation Chairman and CEO. "We are gaining a powerful consumer brand and global market share leader in recordable CDs and DVDs as well as an experienced management team under the leadership of Mike Golacinski. 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."
At this point, I really don't know how this will affect Memorex's product line. As we find out more, we'll let you know. In the mean time, Imation's entire press release can be found here.
