CMC Magnetics to acquire Verbatim

Press Release - Blank optical disc maker CMC Magnetics has disclosed it will acquire storage solutions provider Verbatim from Mitsubishi Chemical Media for US$32 million, with the deal to be finished by year-end 2019.

The acquisition covers all stakes in Verbatim's four subsidiaries separately based in the US, Europe, Australia and Hong Kong, as well as Verbatim's trademark, patents, technologies and retail channels, CMC said.

Verbatim has globally marketed blank optical discs, flash memory products, hard disks and electronic peripherals for 50 years, and is the biggest blank optical disc vendor worldwide with its many patents and licensing of its technologies concerning optical discs, CMC indicated.

CMC said that in 1998, CMC acquired manufacturing technology of floppy disks and magnetic tapes from Verbatim, and two of its factories in California and Mexico. The acquisition has allowed CMC to extend business to floppy disks and magnetic tapes, and become the exclusive producer for the two storage product lines for Verbatim, CMC noted.

CMC adopted optical disc manufacturing equipment developed by Mitsubishi Chemical (parent company of Mitsubishi Chemical Media) in 1998 and formed a strategic alliance with Mitsubishi Chemical and Verbatim for optical disc production in 1999, CMC said.

CMC's consolidated revenues reached NT$688.1 million (US$21.9 million) in May, growing 13.35% sequentially but slipping 6.08% on year, and those of NT$3.138 billion for January-May dropped 7.87% on year.