{"id":547803,"date":"2006-01-23T14:54:00","date_gmt":"2006-01-23T14:54:00","guid":{"rendered":"http:\/\/localhost:8888\/wordpress\/technology\/547803-imation-buys-memorex.html"},"modified":"2006-01-23T14:54:00","modified_gmt":"2006-01-23T14:54:00","slug":"imation-buys-memorex","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/technology\/547803-imation-buys-memorex.html","title":{"rendered":"Imation buys Memorex"},"content":{"rendered":"

Global supplier of removable data storage media Imation has entered into an agreement to acquire Memorex International in a $330 million all-cash transaction.
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As part of the deal, Imation will pay an additional cash consideration of between $5 million and $45 million, over a period of up to three years after the close of the transaction, depending on financial performance of the purchased company. <\/font><\/p>\n

Memorex is a US-based producer of consumer electronics, including in CD and DVD media, optical drives, flash drives and media accessories. <\/font><\/p>\n

Imation says in a statement that it has adequate cash on hand – $507.6 million at 31 December 2005 – to fully fund the deal and meet current operating costs. The group is in the process of establishing a new and expanded credit facility of $200 million to $250 million, which it expects to be in place by the close of the acquisition. <\/font><\/p>\n

"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," says Bruce Henderson, Imation chairman and CEO. <\/font><\/p>\n

"We are gaining a powerful consumer brand and global market share in recordable CDs and DVDs, as well as an experienced management team under the leadership of Mike Golacinski." <\/font><\/p>\n

Golacinski, president and CEO of Memorex International, will head up Imation’s consumer business, maintaining the Memorex headquarters in Cerritos, California. <\/font><\/p>\n

"Now with the focus and resources of a global data storage leader behind us, we can extend our reach into new regions – particularly in Europe – enhance and expand the product portfolio and grow both brands," he says. <\/font><\/p>\n

In fiscal 2005, Memorex reported revenue of $430 million and operating income of $30 million. In the subsequent two quarters, ending 30 September 2005, Memorex’s revenue totalled $205 million and operating income totalled $14 million. <\/font><\/p>\n

After the completion of integration, Imation expects Memorex to be significantly accretive, adding $32 million to $36 million in annualised operating income and $0.40 to $0.47 earnings per share. <\/font><\/p>\n

The full integration of Memorex into Imation is expected to be completed by the end of this year. <\/font><\/p>\n

INet-Bridge<\/i> <\/font><\/p>\n

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Global supplier of removable data storage media Imation has entered into an agreement to acquire Memorex International.<\/p>\n","protected":false},"author":23,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-547803","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/547803"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=547803"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/547803\/revisions"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=547803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=547803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=547803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}