Nexsan to Go Private in Deal With Spear Point Capital ManagementWill spin out from Imation without anymore business.
This is a Press Release edited by StorageNewsletter.com on 2016.11.30
Imation's Bob Fernander, CEO, and Geoff Barrall, CTO will continue to run the Nexsan business and will have seats on the new board.
Going private and partnering with Spear Point Capital strengthens Nexsan's financial foundation ensuring growth and new product development.
The investment from Spear Point will help fund engineering roadmaps, including plans for all-flash versions of Unity, and expansion of its block storage lines.
Additional investments in sales, marketing, and geographic expansion are expected.
Continuing its 100% channel model, the newly private Nexsan will increase account coverage, including channel assistance and marketing initiatives to drive growth and customer adoption.
"This is a transformative move for Nexsan," said Fernander. "This will allow us to better serve our customers, enable our partners, and accelerate growth of our business. We've seen better than expected early traction with Unity and, as a private organisation, we look forward to being able to fulfill our vision at an accelerated rate; our vision of storage solutions that do more, cost less and provide greater value."
Over the past year, Nexsan has been evolving as a company. In October 2015, it appointed Fernander as CEO and acquired private cloud and file share company, Connected Data.
Barrall, CTO of the new Nexsan led the development and launch of its product Unity, a new concept in unified NAS & SAN storage products that adds enterprise file sync and share, multi-site sync and secure archive.
The company invested in sales and marketing, and restructured manufacturing operations which increased gross margins by over 10%. As a result, the company is enjoying Q/Q revenue growth, as seen in Imation's most recent quarterly earnings report.
The deal with Spear Point is expected to close in Q1 2017.
"We are enthusiastic about what the Nexsan team has been able to accomplish over the past year, especially with the early adoption of Unity," said Ron Bienvenu, managing partner, Spear Point Capital Management. "Nexsan's worldwide operations in California, the UK, and Montreal has performed seamlessly and this restructuring and investment will help accelerate growth, create tremendous impact and deliver enormous value."
Imation: Fiscal 3Q16 Financial Results
Pretty rare for storage company to register so bad financial results
2016.11.09 | Press Release | [with our comments]