The Taiwanese company CMC Magnetics has further strengthened its position as a global leader in the production of optical disks for data storage. Recently, CMC Magnetics, in collaboration with the Japanese company Mitsubishi Chemical Corporation (MCC), announced , a deal to purchase Mitsubishi Chemical Media's subsidiary — Verbatim. The transaction is valued at $32 million. The completion of the transaction and transfer of ownership will occur by the end of 2019.
CMC Magnetics will gain rights to the Verbatim trademarks, patents, manufacturing technologies, and sales channels. The Taiwanese manufacturer will also acquire four Verbatim divisions: one each in the USA, Europe, Australia, and Hong Kong. This is not the first time CMC Magnetics has moved to absorb former market leaders in optical disks. In 2015, the Taiwanese company the business and other assets of the optical media pioneer Taiyo Yuden.
CMC Magnetics has been collaborating closely with Mitsubishi Chemical Corporation since the late 1990s. In 1998, CMC Magnetics purchased from Verbatim the technology for manufacturing floppy disks and magnetic tapes along with two factories (in California and Mexico). In 1999, CMC Magnetics and Mitsubishi Chemical (Verbatim) formed a strategic alliance, after which the Taiwanese company began producing optical disks using Japanese equipment under the Verbatim and Mitsubishi brands.
Additionally, today, Verbatim's business includes not only optical disks but also SSDs and numerous flash drives. CMC Magnetics will continue to manufacture all these products under the well-known brand. The company hopes that the acquisition of Verbatim's production will help increase revenue and profit. Currently, CMC Magnetics earns around $22 million per month. The revenue trend is not particularly stable. The globally recognized Verbatim brand could help rectify this situation.
Source: 3dnews.ru
