Feeds

Imation buys TDK's recording media biz

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

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.