Verbatim, a provider of portable data storage devices such as recordable DVDs and CDs and USB flash devices, has closed on the acquisition of Florida-based SmartDisk in a deal valued at $9.5 million.
SmartDisk develops and sells portable multimedia storage products. The firm is based in Ft. Myers, Fla. The deal was approved by SmartDisk shareholders on July 3.
Verbatim is part of Mitsubishi Kagaku Media (MKM), which is based in Tokyo.
The deal includes virtually all the assets of SmartDisk, including its hard drive and imaging technologies. According to Verbatim, SmartDisk had a 16 percent market share in the U.S. retail portable drive market in 2006.
“The acquisition of SmartDisk’s external and portable hard drive business assets is complementary to Verbatim’s existing business,” said Shigenori Otsuka, president of MKM.
“Plans are already underway to leverage these assets and Verbatim’s heritage to quickly extend our global leadership in the removable storage and related accessories markets," he added. "Today’s consumers and business professionals need the full range of removable and portable storage options – hard disk, optical and flash. Now, we can meet all of their storage requirements with a complete family of highly reliable, technically advanced solutions that are also cost-effective.”
Verbatim cited market research from analyst firm IDC that projected the shipment of more than 6 million external hard drives in 2008, an increase of 58 percent from 2006.
Verbatim also plans to retain what it called “key U.S. engineering, operations, marketing and sales personnel.”