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Imation Acquires XtremeMac

7/01/2008 03:36:00 PM Eastern

Oakdale, Minn. — Imation announced yesterday it has acquired XtremeMac for a purchase price of $9 million.

Frank Russomanno, Imation's president and CEO, said in a statement, “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.”

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.”

Bart said he would be joining Imation as an executive director.

Brad Allen, corporate communications and investor relations VP at Imation, told TWICE that the XtremeMac product development team would become Imation employees.

When asked if the XtremeMac brand would still be visible, he said, “Absolutely.”

Regarding further personnel and office changes, Allen said, “Right now everything stays as. Right now nothing changes.”

The sum of the sale will reportedly 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, according to a release.

Imation said it does not expect the acquisition to have a material impact on the company’s fiscal 2008 results. The company said XtremeMac generated approximately $25 million in revenue in calendar year 2007.