Search EMediaLive
Research Center
Blu-ray Disc (BD)
CD-R/RW Drives
Copy Protection
Digital Audio
DVD Authoring Services
DVD Authoring Tools
HD & HDV
HD DVD
HD/DVD/CD Duplication
HD/DVD/CD Media
HD/DVD/CD Printers
HD/DVD/CD Replication
HVD
Packaging
Recording Software
Standards Issues
Storage
The DVD Market
Writable DVD Drives
Services
About EMediaLive.com
Online Advertising
Subscribe to Newsletter
Privacy Policy

Other Related Sites
EventDV.net
Streaming Media
Imation to Acquire Memorex
Posted Jan 23, 2006 Print Version     Page 1of 1
  

Imation Corp and Memorex International, Inc, jointly announced that they have entered into a definitive agreement under which Imation will acquire Memorex International in an all cash transaction for $330 million. Additional cash consideration ranging between $5 million and $45 million would be paid out over a period of up to three years after close, contingent on financial performance of the purchased business. The boards of both companies have approved the transaction.

In Memorex's fiscal 2005, ended March 31, the company reported revenue of $430 million and operating income of $30 million. In the subsequent two quarters, ending September 30, 2005, Memorex's revenue totaled $205 million and operating income totaled $14 million. After completion of integration, Imation expects Memorex to be significantly accretive adding approximately $32 million to $36 million in annualized operating income and approximately $0.40 to $0.47 earnings per share. This estimate includes synergy benefits, purchase price amortization expenses and the assumed loss of interest income due to cash used in the acquisition. Imation anticipates significant synergy benefits, from operating efficiencies including expense reductions, purchasing, and supply chain benefits. The full integration of Memorex into Imation which will result in these benefits is anticipated to be completed by the end of 2006.

Imation intends to fund the transaction with cash and has adequate cash on hand, which totaled $507.6 million at December 31, 2005, to both fully fund the acquisition and to meet current operating needs. Imation is in the process of establishing a new and expanded credit facility of $200 million to $250 million which is expected to be in place by the close of the transaction. The transaction is subject to customary closing conditions and regulatory approvals as well as approval by the shareholders of Hanny Holdings, a Hong Kong-based company listed on the Hong Kong Stock Exchange. Hanny Holdings and Investor Asia Ltd., a private equity firm, which together hold 67 percent of Memorex shares, have agreed to vote their shares in favor of the transaction. The sale is expected to close by the middle of the second quarter of 2006. Merrill Lynch acted as exclusive financial advisor and Dorsey & Whitney LLP as exclusive legal advisor to Imation in connection with the transaction.

Additional information about Imation and this transaction is available at http://www.imation.com/. Additional information about Memorex is available at http://www.memorex.com/.

Click Here to subscribe to EMedia Xtra!

Click Here to view Blu-Ray FAQ!

Click Here to view HD/DVD FAQ!
Print Version   Page 1of 1
  
 


ENTER HERE!


Maps - Adobe Illustrator Vector Format
Maps of the World & USA in Adobe Illustrator vector format. All fully editable. Royalty Free for use in print, web, etc. Buy and download 24/7.
www.MapResources.com

Add your link here>>

DVD Duplication Equipment, DVD Duplicator, DVD Printer, by MF Digital
Primera Technology - DVD Duplicators CD Duplication and Disc Printers
ProAction Media - The CD / DVD Duplication Service and Equipment Pros
CD Duplicator and DVD Duplicator Experts - Summation
DVD duplicators, CD duplication by Disc Makers
Fast, Accurate CD and DVD Duplication Services from DiscNow
Mediatechnics CD & DVD Production Services
Blank CDs, Blank DVDs from Disc Makers
Tapestockonline One Stop Media Shop - DVD’s, Publishers, Ink, Mini DV and HD
DVD duplicator, CD printer and DVD / CD copier machines from StorDigital
CD Mastering, Audio Mastering from the Soundlab at Disc Makers
DVD Duplicators and CD Duplication Equipment at Octave
DVD Duplication DVD Replication, Dallas, Houston, Boston, Philadelphia