November 29th, 2016 by Adam Armstrong
Nexsan To Spin Out From Imation & Go Private
Today Nexsan announced that it will be spun out form its parent company, Imation Corp. Nexsan will spin out in a transaction with Spear Point Capital Management, once again making it a private company. The newly private Nexsan will be run by Imation leaders Bob Fernander, CEO, and Geoff Barrall, CTO.
Nexsan states that by going private and partnering with Spear Point Capital, it will strengthen its financial foundation ensuring continued growth and new product development. The money Nexsan is getting from Spear Point Capital will go to fund goals such as new engineering roadmaps, plans for all-flash versions of Unity, and expansion of its block storage lines. When Nexsan goes private, it will continue 100% channel model worldwide and states that it will increase account coverage, including channel assistance and marketing initiatives to drive growth and customer adoption.
Nexsan is most well known for its unified storage system, Unity. Unity supports both NAS and SAN protocols, Fibre Channel and iSCSI connectivity, and supports both HDD and SSD up to 5PB. Unity claims to be the first and only unified storage solution with secure enterprise file sync and share. Along with its flagship product, Nexsan’s parent company, Imation, acquired Connected Data in the past year. On the financial end of things, the company has seen its gross margins go up over 10% and is also seeing quarter on quarter revenue growth.
The deal with Spear Point is expected to close in the first quarter of 2017.