History (1999): Anacomp Sells Magnetic Business

Anacomp was, only several years ago, a force to be reckoned with in the world of computer media, be they floppy disks or tapes.

Recall that the company acquired Xidex in 1998, Graham Magnetics in 1994, along with a selection of well-known brand names (Memorex, Dysan, StorageMaster).

Even so, this was never the company’s core business, which started in the micrographics industry, and has been losing steam for the past few years, now concentrating more on digital document management services.

Anacomp has just signed a definitive agreement to sell its magnetic business for $47.5 million, $40 million in cash, to an investment consortium led by Windward Capital of New York.

The division employs 600 people worldwide with facilities in Europe and USA. It accounts for 18% of Anacomp’s revenues, or nearly $100 million per year.

This article is an abstract of news published on issue 136 on May 1999 from the former paper version of Computer Data Storage Newsletter.