Furthering the consolidation of the recordable optical media market, Imation agreed to purchase TDK's media business brand in a cash and stock deal worth up to $370 million. TDK will retain its R&D, manufacturing and OEM business.

The deal includes the use of TDK's brand name for current and future recording media products including magnetic tape, optical media, flash media and accessories. The boards of both companies have approved the transaction.

Tokyo-based TDK will retain its research and development, manufacturing and OEM business.The move comes less than a year after Imation, a major supplier to the commercial market, acquired Memorex, giving them a significant stake in the U.S. consumer optical media market and a No. 1 share worldwide in optical discs such as CDs and DVDs, according to Imation. The TDK acquisition strengthens that position.

The deal also gives Imation its first entry to the flash media market and significantly strengthens Imation's position in Blu-ray, as TDK is a member of the Blu-ray Disc Association and a leading supplier to the market.
TDK had experienced significant negative financial results in recent years, but the implementation of some measures has brought back its recording media business to profitability over the past quarters. R2006 revenues were about $670 million.

TDK will continue R&D and manufacturing operations for media including audio, video and data storage tape, and Blu-ray optical discs. TDK will supply Imation as well as its other OEM customers.

Story filed 22.04.07