Deal Closed

Nexsan to Prosper With Private Equity Capital Infusion

CAMPBELL, CA and LONDON, UNITED KINGDOM--(Marketwired - January 24, 2017) - Nexsan™, a leader in Hyper-Unified Private Cloud Storage, today announced that the transaction between Imation Corp. ("Imation") and NXSN Acquisition Corp. ("NXSN"), an affiliate of Spear Point Capital Management LLC ("Spear Point"), pursuant to which all of the issued and outstanding common stock of Nexsan was sold to NXSN, has closed. Imation's leaders Bob Fernander, its Interim Chief Executive Officer, and Geoff Barrall, its Chief Technology Officer, will continue to run the Nexsan business as Chief Executive Officer and Chief Technology Officer of Nexsan, respectively, and will have seats on the new Nexsan board. The transaction is designed to enhance Nexsan's plans for both organic and inorganic growth, as Nexsan will be infused with up to $10 million in fresh private equity capital. The transaction is a strategic final step in the restructuring plan of Imation, which received 50% of the issued and outstanding common stock of NXSN and a $25 million senior secured convertible promissory note, by providing for third-party investment in the Nexsan business to enhance Nexsan's growth and support its recent product developments.

As a result of the deal, Nexsan plans to make additional investments in sales, marketing and geographic expansion. Nexsan is continuing its 100 percent channel model worldwide, and will increase account coverage, including channel assistance and marketing initiatives in order to drive growth and customer adoption. Over the last year, Nexsan has stabilized its revenue and we expect it will continue to grow following the closing of the transaction.

"We are excited to work with Spear Point in the acceleration of revenue growth at Nexsan," said Bob Fernander, Chief Executive Officer of Nexsan. "The private equity capital infusion gives us the opportunity to further improve the way in which we cater to our customers, collaborate with our partners, and promote growth. The success of our UNITY™ solution shows that we are listening and responding to our customers needs. We will accelerate the execution of our vision to provide customers with bullet proof storage products tailored to customer needs that do more, costs less and exploit cloud economics through private cloud solutions."