Imation nets Exabyte distribution deal
Imation nets Exabyte distribution deal
Removable data storage media vendor Imation has signed an agreement with tape backup systems provider Exabyte to exclusively distribute Exabyte brand media products worldwide. As part of the agreement, Imation will also make an equity investment in Exabyte, representing less than five percent of total equity. The total dollar value of the transaction, when fully completed, is $20 million, the majority of which is for distribution rights.
Exabyte will sell all of its media products exclusively to Imation, with Imation to manage the Exabyte media brand and provide sales, marketing and distribution services for Exabyte media products worldwide. The partnership will help Exabyte gain greater market penetration, thanks to Imation's worldwide distribution capabilities and global customer reach, particularly in Latin America, Europe and Asia, where Imation has a long-established presence and customer base.
"Imation is committed to delivering the broadest portfolio of removable data storage media to the market as we leverage our efficient supply chain and global distribution capabilities," said Frank Russomano, President of Imation's Data Storage and Information Management business. "Adding the Exabyte VXA line to our portfolio is a powerful statement of our commitment to invest in profitable growth opportunities, and we expect it to be accretive."
"Imation is a widely recognized business and technology leader in the data storage media market. Our relationship with Imation represents a major vote of confidence for the exciting opportunity we all see for VXA technology and the future of Exabyte," said Tom Ward, Exabyte President and CEO.
"We expect Exabyte media customers will experience little change in their business after a brief conversion period during which we will transition customer accounts to Imation," added Bob Ariniello, vice president of media, Exabyte's team leader of the implementation plan. "Imation will use the same product part numbers previously used by Exabyte, which will help minimize the effort to switch sourcing to Imation. We believe all of our customers will benefit from Imation's proven excellence in distribution and service."
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