Imation Corp., a storage and data security company based in Oakdale, Minn., has agreed to buy Nexsan Corp. for about $120 million in cash and stock, Reuters reports. Nexsan is a privately held California-based maker of disk-based storage systems.
“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,” Mark Lucas, president and CEO of Imation, said in a news release. "Nexsan’s management team has grown this business from start-up to more than $80 million, with strong gross margins. The combination of Nexsan’s products, technologies, and talented teams with Imation’s global reach and infrastructure will be an excellent accelerator for our growth strategy in storage solutions,"
Bloomberg says Imation is projected to report its sixth straight year of net losses and fourth consecutive annual decline.
In October, Imation announced it would be cutting 20 percent of its workforce worldwide by 2013 after poor third-quarter numbers, including a nearly 20 percent drop in revenue compared to the previous year.
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