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.
