Feeds

Imation buys TDK's recording media biz

And they can prove it: they've got the whole thing on tape

Bridging the IT gap between rising business demands and ageing tools

TDK is to sell its recording media business to Imation for $300m in stock and cash.

The deal is expected to close in calendar third quarter 2007. TDK will receive about $280m in Imation stock and $20m in cash. An additional $70m may flow into TDK coffers based on future financial performance.

Under the agreement, Imation will use the TDK brand for present and future recordable magnetic, optical and flash media products world-wide. The right is revokable by TDK after 25 years.

With Imation's stock, TDK will take a 17 per cent ownership stake in the company. The transaction will make TDK the largest shareholder of Imation, giving them the right to nominate a representative to serve on Imation's board of directors.

Imation expects the acquisition will add $25m to $30m in annual income.

TDK will retain its research and development, manufacturing and OEM business.

In a joint announcement, Imation posted its first quarter earnings today. The company's revenue grew 25.9 per cent to $421.9m (Q1' 06: $335.2m). Operating income was down $4.5m from last year however, at $23.6m (Q1 '06: $29.3m).

Imation attributes the drop to industry-wide price erosion due to excess capacity of NAND flash and a delay in the tape media market of the introduction of LTO 4 drives. Imation expects to begin shipping LTO 4 drives in the second quarter. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.