Imation Corp., a provider of storage and data security offerings, announced that it has acquired privately held Nexsan Corporation, a Thousand Oaks, Calif.-based provider of disk-based storage systems, for about $120 million. As the company continues to execute its strategy, Imation is leveraging its deep data storage core, building a platform for long-term growth and improving operating margins in high-growth data storage and security solutions markets.
The acquisition of Nexsan brings to Imation a technology platform and portfolio of disk-based and hybrid disk-and-solid-state storage systems with more than 11,000 existing customers worldwide. It is expected to help accelerate Imation’s growth in the small and medium-sized business and distributed enterprise storage markets.
Imation's strategy “includes focusing on the underserved SMB market with purpose-built storage systems and appliances,” according to Mark Lucas, president and CEO of Imation. “This is a market that Nexsan knows well. Nexsan’s management team has grown this business from start-up to more than $80 million, with strong gross margins.” Nexsan’s 2011 revenues were $82 million and are continuing to grow, with gross margins in the 40 percent range.
Approximately 200 employees, based in the U.S., U.K. and Canada, have joined Imation with this acquisition. The Nexsan business will continue to operate within Imation from Nexsan’s current headquarters in Thousand Oaks, Calif., under existing management. Integration and global expansion activities between Imation’s Tiered Storage and Security Solutions business and Nexsan will be determined in first quarter 2013.
Additional information about Imation is available at www.imation.com.
For more information on Nexsan, visit www.nexsan.com.