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Data security Imation acquires MXI Security

Published 7 June 2011

The cost of data breaches continues to rise annually, with the average organizational cost of a breach reaching $7.2 million in 2010; by 2014, the market for secure data solutions — protecting against data loss, theft, or breach — specifically designed to address secure portable storage, digital identity, and secure portable computing is expected to reach more than $4.5 billion; Imation, a major player in the field of secure data, further strengthens its offerings by acquiring the assets of MXI Security; the move is a continuation of Imation’s strategy of investing in key technology platforms to meet customers’ needs

Imation Corp. yesterday announced it has acquired the assets of MXI Security from Memory Experts International, Inc. Financial terms of the transaction were not disclosed. The acquisition includes MXI’s portable security solutions and technologies, including its OEM business and its line of branded security products — Stealth (Stealth HD and Stealth HD Bio) and Access (Access Enterprise, Access Anti-virus Scanner, and Access Identity).

Approximately forty employees of the Montreal-based MXI business are expected to transfer to Imation with the acquisition.

This acquisition represents another significant step in Imation’s strategy to invest in key technology platforms to address customers’ needs for data storage, protection and connectivity,” said Mark Lucas, president and chief executive officer, Imation Corp. “MXI is an innovative leader in high-security and privacy technologies whose solutions will enhance Imation’s ability to meet our global customers’ growing needs in information security, compliance and management. The MXI team also brings strong technology skills in secure hardware and software engineering, enterprise security solutions, government-validated encrypted USB devices and cryptology to Imation’s research, development and engineering organization.”

Lawrence Reusing, former chief executive officer, Memory Experts International and MXI Security, who will transfer to Imation and continue to lead the MXI business, said, “With Imation’s emphasis on growth in data protection and security, it is an exciting time for MXI to join the [Imation]. We have partnered successfully in the past in the development of Imation’s Defender Collection of secure storage products. By combining MXI’s highly specialized security expertise and proven technologies with Imation’s already strong global leadership in data storage, we expect to reach even more markets with our security offerings. We look forward to continuing to provide OEM partners and end user customers with the leading security solutions they have come to trust under the MXI name.”

Commenting on the importance of continued strategic OEM relationships, Lucas concluded, “Imation looks forward to building upon the strength of MXI Security OEM relationships, including McAfee. McAfee is a highly strategic OEM partner to MXI Security and Imation intends to continue the strategic sales, marketing and engineering investments in the McAfee relationship to drive new technology solutions.”

Imation says that its growing focus on data security solutions addresses the growing market need for businesses, governments, and end users to protect their ever-increasing amounts of data against loss, theft, or security breaches.

According to the Ponemon Institute, the cost of data breaches continues to rise annually, with the average organizational cost of a breach reaching $7.2 million in 20101. By 2014, the market for secure data solutions — protecting against data loss, theft, or breach — specifically designed to address secure portable storage, digital identity, and secure portable computing is expected to reach more than $4.5 billion.

Imation’s acquisition of MXI Security follows the March acquisition of the assets of ENCRYPTX Corporation, a specialist in encryption and security solutions for removable storage media and devices. Imation’s secure storage portfolio includes its Imation branded Defender line of secure portable storage for data at rest, as well as the MXI Stealth and Access and Stealth Zone offerings.