Imation Acquires Memorex for $330M

Imation has agreed to purchase competitor and fellow blank media manufacturer Memorex in a cash transaction worth $330 million. Additional cash payments of between $5 and $45 million would be paid based on future financial performance. The combined company would maintain Memorex's headquarters in Cerritos, Calif.

The acquisition would complete in the second quarter, and Memorex should be fully integrated with Imation by the end of the year, the companies said. "Added to our technology expertise, strong B2B brand, global footprint, broad product portfolio and industry experience, we are creating a new global powerhouse in the data storage industry," said Imation chairman and CEO Bruce Henderson.