Imation Definitively Sold Nexsan

Imation Corp. announced that its transaction with NXSN Acquisition Corp., an affiliate of Spear Point Capital Management LLC, pursuant to which all of the issued and outstanding common stock of Nexsan Corporation was sold to NXSN, has closed.

Imation's Bob Fernander, its interim CEO, and Geoff Barrall, its CTO, will continue to run the Nexsan business as CEO and CTO of Nexsan, respectively, and will have seats on the new Nexsan board.

The transaction is designed to enhance Nexsan's plans for both organic and inorganic growth, as Nexsan will be infused with up to $10 million in fresh private equity capital.

The transaction is a strategic final step in the restructuring plan of Imation, which received 50% of the issued and outstanding common stock of NXSN and a $25 million senior secured convertible promissory note, by providing for third-party investment in the Nexsan business to enhance Nexsan's growth and support its recent product developments.

This investment provides value for Imation stockholders by eliminating Imation's need to make this investment in Nexsan itself while preserving the potential for equity value upside from Nexsan's ongoing development and market penetration.

As a result of the deal, Nexsan plans to make additional investments in sales, marketing and geographic expansion. It is continuing its 100% channel model worldwide, and will increase account coverage, including channel assistance and marketing initiatives in order to drive growth and customer adoption. Over the last year, it has stabilized its revenue and is expected to continue to grow following the closing of the transaction.