Imation Corporation has acquired storage company Nexsan for $120 million. Known for building data storage products, Imation will gain access to Nexsan’s 11,000 customers worldwide along with 200 employees in the U.S., Canada, and the U.K. Imation is expecting that Nexsan’s business will strengthen their storage portfolio and expand their value proposition to small and medium-sized businesses along with enterprise storage markets.
“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,” stated Imation President and CEO Mark Lucas. “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.”
Nexsan’s 2011 revenues were $82 million and their gross margins are at around 40%. Imation reported $1.3 billion in revenues and a 21.3% gross margin for the same period. Nexsan filed for an IPO in April 2008, but withdrew their plans in April 2012 and cited “unfavorable market conditions.”