Imation acquires Memorex

Imation will acquire Memorex in an all-cash transaction of $330 million, the two companies announced today. An additional amount in the range between $5 million and $45 million will be paid by Imation over a period of up to three years after close, if certain financial goals are achieved.

Memorex, founded in 1961, reported revenues of $340 million and a profit of $30 million in fiscal 2005, which ended on March 31 of 2005. In the most recent quarter, Memorex’s sales were $205 million with profits of $14 million.

The acquisition will eat up the majority of Imation’s available cash reserves, which totaled $507.6 million at December 31, 2005.