Imation Munches Memorex

January 23, 2006: In a US$330 million all cash deal, Imation and Memorex have shaken hands and agreed that Imation will acquire the magnetic tape manufacturer.

Both company boards have approved the deal, which includes an extra $5 to $45 million to be paid out to Memorex over the next three years depending on the companies performance.

Imation is already a major force in the recordable storage media field. This new purchase will further extend its reach into the industry and turn it into CDR colossus.

"This acquisition is a major strategic milestone for Imation" says Bruce Henderson, Imation chairman and CEO. "We are gaining a powerful consumer brand and global market share leader in recordable CDs and DVDs… we are creating a new global powerhouse in the data storage industry."

After integration has completed, Imation expects to grow Memorex’s already buoyant profits ($430 million as of 31st March, 2005) by between $32 and $36 million. Integration is expected to be completed by the end of 2006.

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