Buying Memorex apparently wasn't enough for Imation. The company has announced that they've agreed to buy TDK's recording media business for $300 million in stock and cash. Depending on the financial performance of the acquired business, TDK may also receive additional payments of up to $70 million.
ImationCorp. (NYSE: IMN) and TDK (NYSE: TDK) announced today that they havereached a definitive agreement under which Imation will acquire TDK brandworld wide recording media business and use of the TDK brand name forrecording media products, for $300 million in a combination of Imationcommon stock and cash with potential for payment of up to an additional $70million based on future financial performance of the acquired business. TDKwill retain its R&D, manufacturing and OEM business. The boards ofdirectors of both companies have approved the transaction.
As with Memorex, Imation will continue to supply TDK brand products to the market. TDK will also continue R&D and manufacturing operations for recording media and will supply Imation as well as its other OEM customers. If you'd like to read more, Imation's entire press release can be found here.
