Imation invests $20 m in Exabyte

BANGALORE: Global leader in removable data storage media, Imation Corp., is making an equity investment in Exabyte Corp., representing less than five percent of total equity. The total value of the transaction is $20 million. Extending the agreement, Imation becomes the exclusive worldwide distributor of Exabyte brand media products.

Under the agreement, Exabyte will sell all its media products exclusively to Imation, while Imation will manage the Exabyte media brand and provide sales, marketing and distribution services for Exabyte media products worldwide — including VXA and Mammoth technologies. This partnership utilizes Imation’s worldwide distribution capabilities and global customer reach to enhance the sales and distribution of Exabyte media products, particularly in Latin America, Europe and Asia.

"Imation is committed to delivering the broadest portfolio of removable data storage media to the market as we leverage our efficient supply chain and global distribution capabilities. Adding the Exabyte VXA line to our portfolio is a powerful statement of our commitment to invest in profitable growth opportunities, and we expect it to be accretive," said Frank Russomanno, president, Imation's Data Storage and Information Management business. "Leading storage OEMs, end-user customers, and distributors continue to trust Imation’s industry leadership — from technology development and manufacturing know-how to our broad portfolio and extensive customer experience -- to meet their needs for high-quality, reliable removable data storage media."

"Imation is a widely recognized business and technology leader in the data storage media market. Our relationship with Imation represents a major vote of confidence for the exciting opportunity we all see for VXA technology and the future of Exabyte," said Tom Ward, President and CEO, Exabyte. "The Imation investment clearly validates the VXA format, provides capital for future product development and will help secure the VXA roadmap."

During the last 14 months, Exabyte has signed nine new OEM agreements and enrolled more than 700 new resellers for its VXA products. In the nine months ended September 27, 2003, Exabyte reported $32 million in storage media revenues.