|Imation Receives Approval for Acquisition of Assets of EMTEC Magnetics GmbH|
OAKDALE, Minn., Oct. 23 /PRNewswire-FirstCall/ -- Imation Corp. (NYSE: IMN), a worldwide leader in removable data storage media, today announced it had been notified by the German Cartel Office that its proposal to purchase certain data storage assets of EMTEC Magnetics GmbH, a German- based manufacturing subsidiary of EMTEC International Holding GmbH, has been approved -- clearing the way for completion of the acquisition. Imation initially announced plans to acquire certain data storage assets from EMTEC Magnetics GmbH on June 30, 2003. The purchase price is approximately US $15 million in cash.
Under the terms of the agreement, Imation will acquire assets and intellectual property, including patents, licenses, and technical knowledge, relating to removable data storage tape media.
"We are pleased to receive regulatory approval for the completion of this acquisition which enables us to ensure the long-term worldwide availability of legacy tape products, such as 3480 and 3490E tape cartridges, to our data center customers," said Frank Russomanno, president, Imation's Data Storage and Information Management business. "This is another example of Imation's commitment to invest in technologies that strengthen our core removable media business and deliver long-term value to our global customers."
Since EMTEC's insolvency filing in April 2003, a court-appointed Insolvency Administrator under Germany's Insolvency Act has managed the affairs of EMTEC Magnetics GmbH. As a result of the company's insolvency filing, there were some limitations in the availability of raw materials which caused temporary supply restrictions of legacy products, such as 3480, 3490 and 9490EE tape cartridges, to the market. This investment has enabled Imation to expedite the resumption of supply and secure long-term availability of chrome-based legacy tape products to the global market place.
Imation's full portfolio of tape products for the mid-range server and enterprise environment include: DLTtape(TM), Super DLTtape(TM), Ultrium(TM), AIT-2 (Advanced Intelligent Tape(TM)), 9840, 9940, 3480, 3490E, 3590 and 3590E tape cartridges. For additional information on Imation's product portfolio, please visit www.imation.com .
Imation Corp. is a leading developer, manufacturer and supplier of magnetic and optical removable data storage media. With one of the broadest product lines in the industry-spanning from a few megabytes to hundreds of gigabytes of capacity in each piece of media, Imation serves customers in more than 60 countries, in both business and consumer markets. From large data centers to distributed networks, Imation's tape cartridges are used in data processing, security, business continuity, backup and archiving applications. Customer needs for reliability, convenience and portability to store and manage business data, photos, video, images and music on professional and home desktops and increasingly in consumer electronics devices drive demand for Imation's optical and diskette products. With more than 300 technology scientists and more than 300 data storage patents in the U.S. alone, Imation continues to pioneer today's proven magnetic and optical media technologies.
As of September 2003, Imation employed approximately 2,800 people worldwide. Revenues from outside the U.S. contribute approximately 53 percent of total sales. Additional information about Imation is available on the company's website at www.imation.com , or by calling 1-888-466-3456.
Imation and the Imation logo are trademarks of Imation Corp. All other trademarks are the property of their respective owners.
SOURCE Imation Corp.