TDK has agreed to sell its recording media division to Imation for $US300 million in cash and shares, the companies said Thursday.
The deal will allow Imation to use the TDK brand-name on tape, optical disc and flash media products, so it's likely that the TDK brand will remain on store shelves after the acquisition.
TDK will get $US280 million in Imation stock, which will give it an approximately 17 percent share in Imation, and the remaining $US20 million in cash. The deal is expected to close in the third quarter this year.
Imation agreed to pay up to an additional $US70 million to TDK based on the financial performance of the acquired division. The deal will make TDK the largest shareholder of Imation and allow the Japanese company to nominate a representative to serve on Imation's board.
The deal does not include TDK's research and development work or its OEM business, under which is manufactures discs for other companies to be sold under their respective brand names.