Imation Corp. has acquired a California-based data-storage provider for about $120 million in cash and stock, aiding the Oakdale-based company's push into cloud computing.
The acquisition announced Wednesday of privately held Nexsan Corp., based in Thousand Oaks, Calif., aims to boost Imation's share of the storage and data security market, especially for small and medium-sized businesses and for enterprises whose operations are widely distributed, Imation said in a press release.
Nexsan, with 200 employees in the United States, Canada and United Kingdom, has more than 33,000 data systems installed at 11,000 customers worldwide. Imation said Nexsan's advanced technologies help organizations with traditional, virtual and cloud computing.
The cash-stock transaction included approximately $105 million in cash and 3.3 million Imation common shares, the equivalent of about $15 million, the company said.
Nexsan will continue to operate from its headquarters in Thousand Oaks, Calif., under existing management, Imation said.
"Imation's acquisition of Nexsan is an exciting next step in our strategic transformation, which includes investing in growth platforms in data storage and security solutions, where we are targeting markets with strong growth rates," said Imation CEO Mark Lucas in a statement.
Nexsan CEO Philip Black said Imation offers "the scale and global footprint" to expand. Nexsan's 2011 revenues were $82 million and growing, with gross margins in the 40 percent range.
Imation's 2011 revenues were $1.3 billion, with a net loss of $47 million before interest, taxes and amortization (EBITA). The company said the acquisition is expected to boost Imation's EBITA.
Imation has been working on what it calls a "strategic transformation" away from traditional data storage products that had been its mainstay into newer storage technologies. It also has been trying to cut costs.
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