Acquisition Expands iPod, iPhone and Apple TV Accessory Lines
OAKDALE, Minn (JUNE 30, 2008)—Imation Corp. (NYSE: IMN) today announced it has acquired substantially all of the assets of privately held Xtreme Accessories, LLC, (XtremeMac) for a purchase price of $9 million, to be comprised of $7 million of cash paid to XtremeMac plus $2 million of assumed net liabilities. There is potential additional consideration up to $10 million payable over a three-year period, contingent on financial performance of the acquired business. The acquisition is not expected to have a material impact on Imation’s results of operations in fiscal 2008.
XtremeMac, a Florida-based product design and marketing firm focused on consumer electronics products and accessories for the iPod, iPhone and Apple TV markets, generated approximately $25 million of revenue in calendar year 2007.
Commenting on the transaction, Frank Russomanno, Imation’s President and Chief Executive Officer said: “This acquisition is another building block in our strategy as we build a portfolio of strong brands that resonate with consumers—in this case the large and growing number of iPod, iPhone and Apple TV customers. With the acquisition of XtremeMac, Imation has added a brand recognized and respected by Apple enthusiasts and one that enhances our portfolio of products serving the growing market for consumer electronics related accessories. The XtremeMac accessories can be found in Apple stores, consumer electronics retailers and on-line channels.”
“Under Gary Bart, XtremeMac has developed a reputation for award-winning product designs. Their design experience and understanding of these markets broadens and strengthens our overall consumer electronics and accessory capability,” he concluded.
Gary Bart, founder and President of XtremeMac said: “The combination of XtremeMac’s market knowledge and product design skills with Imation’s global reach and supply chain capabilities allows us to take advantage of the worldwide market opportunity in A/V consumer electronics accessories and create an unparalleled experience for our customer base. I am pleased to join the global Imation team as Executive Director, guiding iPod, iPhone and Apple TV accessory product design and direction as we integrate the XtremeMac brands into the growing Imation portfolio.”
About XtremeMac
XtremeMac, headquartered in Weston, FL, is an innovative leader in the exciting and fast-paced MP3 player accessory market. Founded in 2001 shortly after the release of the Apple iPod, XtremeMac was the very first company to introduce a case for the iPod at MacWorld in January, 2002. Working closely with Apple Inc., the company has built a strong brand as one of the leading iPod accessory companies. With 29 employees, XtremeMac’s business remains focused on creating innovative accessories that complement the iPod, iPhone, Apple TV and related products made by Apple Inc. Popular product lines include the award winning Luna, Tango, SportWrap, InCharge, TuffWrap, and a line of advanced affordable A/V cables sold under the XtremeHD brand. Further information about XtremeMac can be found at www.xtrememac.com.
About Imation
Imation Corp. is the only company in the world focused on the development, manufacture and supply of removable data storage products spanning the four pillars of magnetic, optical, flash and removable hard disk storage. With more than 50 years of data storage leadership beginning with the development of the world’s first computer tape, in 2006 Imation proudly marked its 10th anniversary as an independent company. In addition to the Imation brand, Imation Corp.’s global brand portfolio includes the Memorex brand, one of the most widely recognized names in the consumer electronics industry, famous for the slogan, “Is it live or is it Memorex?” Imation is also the exclusive licensee of the TDK Life on Record brand, one of the world’s leading recording media brands. And as co-developer of Nickelodeon’s Npower brand of consumer electronics, Imation helps empower kids of all ages to use the latest technology. Additional information about Imation and its brands is available at www.Imation.com or by calling 1-888-466-3456.
Risk and Uncertainties
Certain information contained in this press release which does not relate to historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include our ability to successfully integrate acquisitions and achieve the anticipated benefits in a timely manner; our ability to successfully manage multiple brands globally; our ability to successfully defend our intellectual property rights, including the Memorex and TDK Life on Record brands and the Philips patent cross license; continuing uncertainty in global economic conditions and particularly U.S. conditions that make it difficult to predict product demand; the volatility of the markets in which we operate; our ability to meet our cost reduction and revenue growth targets; our ability to successfully implement our global manufacturing strategy for magnetic data storage products and changes to our R&D organization and to realize the benefits expected from the related restructuring; our ability to introduce new offerings in a timely manner either independently or in association with OEMs or other third parties; our ability to achieve the expected benefits from the Moser Baer and other strategic relationships and distribution agreements such as the GDM joint venture and Tandberg relationship; the competitive pricing environment and its possible impact on profitability and inventory valuations; foreign currency fluctuations; the outcome of any pending or future litigation; our ability to secure adequate supply of certain high demand products at acceptable prices; the ready availability and price of energy and key raw materials or critical components; the market acceptance of newly introduced product and service offerings; the rate of decline for certain existing products; the possibility that our goodwill or other assets may become impaired, as well as various factors set forth from time to time in our filings with the Securities and Exchange Commission.
